MT0001 Lect 1 - 6 PDF

Quiz Tips (Must Remember!!!) 1. What is not a Major Air Pollutant? - Carbon Dioxide/Oxygen a. Major Air Pollutant Includes: i. Sulphur Dioxide (SO2) ii. Nitrogen Dioxide (NO2) iii. Carbon Monoxide (CO) iv. Ozone (O3) v. Partic...

Quiz Tips (Must Remember!!!) 1. What is not a Major Air Pollutant? - Carbon Dioxide/Oxygen a. Major Air Pollutant Includes: i. Sulphur Dioxide (SO2) ii. Nitrogen Dioxide (NO2) iii. Carbon Monoxide (CO) iv. Ozone (O3) v. Particulate Matter (PM) vi. Lead (Pb) b. Greenhouse Gases with the Highest Capability to Trap Heat: i. Methane (CH4) → Global Warming Potential (GWP), 21 times higher than Carbon Dioxide (CO2) 2. Calculation on Emission Factor a. Emission Factor x Consumption = Emission b. Emission Factor (EF) is an Average Emission Rate of a Pollutant from a Specific Activity 3. What is an Emission Control Area (ECA)? a. Designated Zones where stricter Emission Standards are enforced to control Air Pollution from ships b. Examples: i. North and Baltic Sea ECAs ii. North America and Caribbean Sea ECAs Sulphur Content must not exceed 0.1%m/m iii. High Seas - 0.5%m/m 4. Difference between Liner and Tramp Shipping a. Liner Shipping i. Fixed Schedule with Predefined Ports of Call ii. Ships Containerized Cargo (ISO Containers) b. Tramp Shipping i. No Fixed Schedule ii. Bulk Cargo (Dry Bulk, Oil or Gas) 5. Ways to Control Risk (4 Ways) a. Avoid: change planes to Eliminate Risk i. E.g. Avoiding Pirate-Infested Waters be Rerouting Ships b. Mitigate: reduce Probability or Impact of Risk i. E.g. Wearing Helmets during Cargo Operations c. Transfer: shift risk to a Third Party i. E.g. Buying Marine Insurance d. Accept: take No Action and bear the Consequences i. E.g. Accepting Minor Risks like Small Injuries that do not justify Additional Resources 6. Similarity and Difference between Quality Control (QC), Quality Assurance (QA) and Quality Thinking (QT) [Pick 2 out of 3 - QA, QC, QT] a. Similarities: i. Both are Quality Management Processes (QM) ii. Aim to Solve Quality Problems and Improve Quality b. Differences: i. Quality Control (QC): Focuses on Identifying and Fixing Defects Outcome-Oriented (Product Checking) Ensuring things are done as per requirements by Inspecting Performed after Production ii. Quality Assurance (QA) Prevent Defects & Improve Quality Process-Oriented (Processes meet Standards) Doing the right thing the right way Performed before Production iii. Quality Thinking (QT) Motivating Quality Improvement Mindset-Oriented (Employees Attitude) iv. QC & QA are Tools, Techniques and Methods (Technical Aspect), QT involves changing Employees’ Attitude towards Quality Management (Sociocultural Aspect) 7. Define the aspects of HSSE a. Health i. Physical, Mental, and Social Well-Being of Crew Members and others in Shipping Operations ii. Eliminate Diseases and Injuries b. Safety i. Protecting Crew and Others from Unintended Accidents or Incidents that could cause Harm ii. Implementing Safety Measures and Control to prevent Accidents c. Security i. Protecting Crew, Others and Assets from Deliberate Threats (Criminal Activities or Terrorism) ii. Effective Security Measures = Uninterrupted Operation of Ships d. Environment i. Protecting the Environment by Controlling Pollution ii. Minimising Air, Water, Land, and Noise Pollution caused by Shipping Operations 8. International Maritime Organization (IMO) and their Roles & Responsibilities a. Global Standard-Setting Authority for Safety, Security and Environmental Performance of International Shipping b. Responsibilities: i. Creating a Universal Regulatory Framework Adopted and Implemented Globally Effective Operation through Agreed-Upon Regulations ii. Safety Conventions SOLAS (Safety of Life at Sea) STCW (Standards of Training, Certification, and Watchkeeping for Seafarers) COLREG (International Regulations for Preventing Collisions at sea) Load Lines Convention iii. Security Conventions International Ship and Port Facility Security (ISPS) Code (Security Risks in Port Facilities and Ships) iv. Environmental Conventions MARPOL (International Convention for the Prevention of Pollution from Ships) IMO 2020 (Regulation to Reduce Sulphur Emissions) v. Drafting, Adopting, and Enforcing these Conventions, ensuring Compliance through Flag State Control and Port State Control (Country of Registration and Countries visited enforce Regulations)  9. Additional MCQ Questions a. Carbon Dioxide and Methane contribute to 90% of GHG True b. Reefer Container is the Largest Contributor to Emissions False Carbon Audit (Tutorial 1) Record, Manage, Monitor and Reduce GHGs Emissions of an Organization ○ Organisational Boundary Legally Owned or Controlled 2 Approaches for Consolidating GHGs Emissions Management Control Approach - GHGs Emission from Facilities over which you have Operational or Financial Control Equity Share Approach - GHGs Emissions in Proportion to % Ownership ○ Geographical Boundary Physical Location, Area, Services, Facilities ○ Base Year Single Base Year Average of Several Years Rolling Base Year ○ Operational Boundary Scope 1, Scope 2 or Scope 3 ○ Identify GHGs Sources CO2, N2O, CH4, HFCs, PFCs ○ Calculation Methodology 2 Approach Calculation-Based: Emission = Consumption x Emission Factor Measurement-Based ○ Predictive Emissions Monitoring System ○ Continuous Emissions Monitoring System ○ Emission Factor (EF) & Global Warming Potential (GWP) EF: Average Emission Rate of a Given Pollutant from a Given Source relative to the Intensity of a Specific Activity GWP: Relative measure of Heat a GHG can Trap in the Atmosphere ○ Collect Data Annual Data for each Activities Defined Amount of Diesel Fuel Consumed Annual Kilowatt Hour Electricity Consumed Petrol used for Vehicles Water Consumed by Buildings ○ Calculate Emission Total Emissions are equal to all GHGs converted to CO2 equivalent measured in Ton ○ Develop GHGs Inventory Record and Input all Emissions within the Organisation ○ Reporting Publish GHGs Emissions Index/Carbon Footprint Emission Control Area (ECA) (Tutorial 2) ECA in Effect: ○ Baltic Sea ○ North Sea ○ North America ○ US Caribbean Sea High Seas: 0.5%m/m Port Water: 0.1%m/m Air Pollution Scope 1 → Direct ○ Company Owned Vehicles Scope 2 → Indirect ○ Purchased Electricity for own use Scope 3→ Indirect ○ Production of Purchased Materials Environmental Impact by Terminal Operations (Tutorial 2) Quay Vessel Bunker Fuel (Scope 1) Main Engine shut down, Auxiliary Engine turn on Major Emission from Auxiliary Engine - CO/CO2, NO2, SO2, PM Highest Level of Emission in PM, SOx, NOx (except GHGs) Ballast Water Discharge = Contaminate Waters Quay Crane Electricity (Scope 2) Terminal Yard Rubber-Tyred Gantry Diesel Fuel (RTG) Black Smoke - N2O, CO/CO2, PM Most emission during start of Hoisting Up Cycle High Noise Levels during Operation Same situation at Quay Mobile Equipment & Diesel, Petrol, Liquefied Petroleum Gas (LPG) Vehicle Emissions during Operation Terminal Yard Chemical Spillage drain through Drainage System = Water Pollution in Basin Equipment Maintenance Area: Handling of Chemicals in case of Spillage General Conservation of Energy: Lighting Source, Computer Environmental Waste Dumping Concerns Bulk Terminal Storage Open Area: Blown by Strong wind or Drained by Rain Handling Air Pollution: Pneumatic and Mechanical Type Spillage or Fire Easily occur at Liquid Bulk or Liquefied Gas Terminal if not Accident handled with care or lack of maintenance Environmental Initiatives by Terminal Operations Quay (On-Shore Power System) (Scope 2) Known as “Cold Ironing” or Alternative Maritime Power (AMP) Reduce NOx, SOx, CO, PM at Quay System Cables, Electrical Equipment Junction Box Full Vessel Vessel - Design Terminal Integrated Semi-Fixed Vessel - Container (Movable) Terminal Mobile-Based Terminal Terminal Fixed-Based Terminal Terminal Barge Barge Barge Terminal Yard (Electrified RTG) (Scope 2) Overhead Conductor Line System w Intense Requirement on Pantograph Infrastructure Wider Back-to-Back Clearance Required High Productivity due to less Drive-In and Drive-Out Operations Exposed Conductor Bar System w Direct Current - Vulnerable to Pantograph Electricity Exposure Similar Productivity to Conductor Bar System Cable Reel System Lower Productivity with Manual Plugging & Unplugging Additional Weight (5Ton) in Cable Reel Conductor Bar System with Towed Lower Productivity with Manual Trolley Plugging & Unplugging Conductor Bar with Automatic High Productivity with Automatic Electricity Connection System Plugging & Unplugging Power Substation needed to provide City Power to RTG Reefer Yard Solar Panel Solar Energy to Electrical Energy Energy Saving and Carbon Reduction Terminal Yard (Electric Vehicle) (Scope 2) Cars Battery Pack Range: 160km Advantages: Zero Emissions - NOx, SOx, PM Lower Operating Cost (Long-Term) & Noise Level Strong Acceleration w High Torque at Low Speed Mover Battery Pack Disadvantage: Lower Operating Hour Charger needed Electrical (Pantograph) Hydraulic Hybrid Hydrogen or Electric Hybrid Fuel Cell Drive Advantages: Zero Carbon Emission Lower Operating Cost Chemical/Waste Handling and Others General Waste Separate according to Categories Chemical Waste/Waste Drip Tray in case of Spillage Water Education and Training Awareness in Environmental Protection Participation in Green Awards Competition or Environmental Protection Activities Conservation of Energy LED Less Energy Consumption Longer Service Life More Expensive Environmental Initiatives at a Regional Level Singapore Hong Kong Maritime Singapore Green Initiative Government Incentive Green Ship Program Fair Winds Charter Green Energy & Technology Program Switch to 0.5%m/m sulphur Green Awareness Program content or less Air Pollution Control (Ocean Going Vessels) (Fuel at Berth) Regulation China San Pedro Bay Pearl River Delta (PRD) Clean Air Action Plan (CAAP) Incentive Scheme for On-Shore OGV Control Measures Power System Clean Trucks Program (CTP) Berth Fuel Switching Cargo Handling Equipment (CHE) Control Measures Green Ship Incentive Program Green Flag Incentive Program Vessel Main Engine Fuel Incentive Program Environmental Management System (Tutorial 3) ISO 14001 Plan-Do-Check-Act Model PDCA ISO: 14001:2004 Standard Cycle Environmental Policy Plan Planning Environmental Aspects Legal and Other Requirements Objectives, Targets and Programmes Do Implementation and Operation Resources, Roles, Responsibility and Authority Competence, Training and Awareness Communication Documentation Control of Documents Operational Control Emergency Preparedness and Response Check Checking Monitoring and Measurement Evaluation of Compliance Nonconformity, Corrective Action and Preventive Action Control of Records Internal Audit Act Management Review Major Requirements (ISO 14001) Policy Statement ○ Commitments to Prevent Pollutions ○ Continual Improvements of EMS ○ Improvements in Overall Environmental Performances ○ Compliance with all Applicable Statutory & Regulatory Requirements Identification ○ Aspects of Community Organisations Activities, Products, Services that could have Significant Impacts on the Environment Performance Objectives and Targets for EMS ○ Implementing EMS to meet these Objectives and Targets ○ Establishing a Program to Periodically Audit the execution of EMS ○ Checking and Taking corrective and preventive actions when deviations occur ○ Undertaking Periodic Reviews by Top Management to ensure sustainability Relationship between ISO 14001 & ISO 14000 ○ ISO 14001 is under ISO 14000 (Family of Standards) in relation to Environmental Management ○ ISO 14000: Framework for Development of Environmental Management Organisation minimise Harmful Effects on the Environment caused by Activities and to Sustain Improvement of Environmental Performances Includes Environmental Issues Environmental Audit, Performance Evaluation, Labelling, Life-Cycle Assessment Quality (Tutorial 4) Perceptual - Perceived by Individuals (Senses or Experiences) Conditional - Dependent on Context/Conditions (Product or Service Used) Subjective - Importance of Attributes (Unique Preference and Priorities) Product Quality Dimensions Performance - Primary Purpose Features - Supporting Products Basic Performance Reliability - Performs consistently over Useful Design Life Conformance - Comply with Specifications or Numeric Dimensions Durability - Tolerate Stress or Trauma Serviceability - Ease of Repair Aesthetics - Sensory Characteristics Perceived Quality - Subjective Understanding influenced by Brand, Advertisement and Word of Mouth Service Quality Dimensions (Tutorial 4) Tangibles - Physical Appearance of Facility, Equipment, Personnel and Communication Materials Service Reliability - Performing service Accurately and Dependably Responsiveness - Prompt in Providing and Adjusting Service to meet Changing Needs of Customer Assurance - Knowledge of Employees and Ability to Inspire Trust and Confidence Empathy - Helpful, Caring, and giving Individualised Attention Quality Control (QC) Evaluating Final Product for Quality Problems based on Predefined Standards E.g. Inspecting, Sampling or Testing Defects are Detected ○ Product: Reject or Rework Dispose Remake ○ Service: Service Recovery Compensation Apologies Problem Solving Explanation Quality Assurance (QA) Associated with Guaranteeing the Quality of a Product Process-Oriented ○ Proactive - Preventing Quality Problems or Improving Quality Activities: ○ Mistake Proofing ○ Kano Model Quality Thinking (QT) Mindset for Quality Improvement Change in Attitude of Employees ○ Never Satisfactory = Constantly Improved Supports Implementation of QA and QC Focus on People Aspect ○ QC and QT are Tools, Techniques and Procedures Enabled by: ○ Planning for Improvement ○ Providing Leadership and Support ○ Providing Training and Retraining ○ Providing Employee Recognition ○ Creating Organisational Culture ○ Designing Organisational System that Reinforces Quality Ideas ○ Facilitating Organisational Communication Similarities and Differences of QC, QA and QT (Tutorial 4) Similarities: ○ All Part ofQuality Management ○ All are Complementary Objectives: Solve Quality Problems and Improve Quality QC/QA must be Supported by QT and Vice Versa Differences: ○ QC & QA are Tools, Techniques and Methods (Technical Aspect) ○ QT involves Changing Employees Attitude towards Quality Management (Sociocultural Aspect) ○ QC - Identifying and Fixing Defects ○ QA - Preventing Defects & Improving Quality ○ QT - Motivating Quality Improvement Difference between QA and QC (Tutorial 4) Quality Assurance Quality Control Prevent Defects Identify and Fix Defects Process-Oriented Exercise Outcome-Oriented Exercise Done before Quality Control Done after Quality Assurance Make sure Quality Team is doing the Make sure whatever Quality Team has Right Things the Right Way done as per Requirements Activities Determined before Activities Performed after Product is Production Work Begins Produced Define Standards and Procedures to Ensure Standards are Followed while meet Customer Requirements Working on Product Mistake Proofing Preventing Service Failure through Redesign of Service Process Main Errors Sub Errors Example Service Task Errors Work done Incorrectly, Not Errors Request, Wrong Order or Too Slow Treatment Errors Failure to Acknowledge, Listen or React Appropriately to Customers Tangible Errors Dirty Facilities/Uniforms, Failure to Control Noise/Odours/Light and Temperature Customer Preparation Errors Failure to bring necessary Errors (Before Encounter) materials to encounter Encounter Errors Failure to remember steps in (During Encounter) Service Process Resolution Error Failure to provide Service (After Encounter) Feedback Kano Model Design Products or Services that Satisfy and Delight Customers Customer Satisfaction depends on Attributes’ Functionality Service/Product Attributes' Functionality have different effects on Customer Satisfaction Must-Be Attributes (Number 1 Priority) ○ Expectations ○ Features do not increase nor decrease satisfaction ○ E.g.: Safety, Security, Health, Environment Performance Attributes (Number 2 Priority) ○ Greater Functionality = Greater Satisfaction ○ E.g.: Speed, Reliability, Integrated Logistics Services Attractive Attributes (Number 3 Priority) ○ Unexpected Attributes = Positive Reaction ○ Decay over time, turning into Performance and finally, Must-Be ○ E.g.: Technology Innovation, Triple-Bottom Line, Green Certification Indifferent Attributes (Number 4 Priority) ○ Functionality = No Effect on Customers ○ E.g.: Ship and Container Colours, Cargo Hold’s Interior Design, Ship Engine Brand Quality and Profitability Improving Quality → High Perceived Value → Higher Price & Increase Market Share → Increase Revenue = Increase Profitability Conformance to Quality Standards → Lower Cost = Increase Profitability The Genuine Link Elements of Genuine Link between Ship and State ○ Ship is Owned by an Individual or Company of the Same Nationality or Registered in the Flag State ○ Merchant Fleet contributes to National Economy of the Country ○ Revenues and Expenditure of Shipping and Purchases and Sales of Vessels are treated in the National Balance of Payments Account ○ Employment of Nationals on Vessels Closed & Open Registries ○ Ship Owner can register either Closed or Open Registry ○ Closed Registry Ships owned by Individuals or Companies of Same Nationality ○ Open Registry Ships owned by Individuals or Companies of Any Nationality Requires Foreign Shipowner to have Office in the Country with Minimum Paid-Up Capital Appointment of Commercial/Technical Manager in the Country who is In-Charge of all matters (Ship Registration, Crew Manning, and Safety Management) ○ Countries with both Closed and Open Registries Norwegian Ship Register (NOR) - Norwegians Only Norwegian International Ship Register (NIS) - All Nationalities ○ Flag of Convenience (FOC) Ships owned by Individuals or Companies of Any Nationality Does not Require Shipowner to have Office in the Country or appoint a Commercial/Technical Manager Does not Adopt and Enforce “Core” Maritime Conventions relating to: Safety Pollution Prevention Training Standards Labour Regulations Do not have Power nor Administrative Machinery to Impose any Government or International Regulations to control Shipping Companies Pose Threat to Health, Safety, Security and Environment Crime (Human/Illegal Products Trafficking) Terrorism Poor Working Conditions and Abuse of Seafarers (Exploitation from Shipowners) Accidents (Pollution and Collusion) Prevented Entry into Territorial Waters of Port States that Ratified core Maritime Conventions Prevent Trading with the Country Targeted and Detained by Port States Unable to Continue Operation until all Deficiencies are Corrected Advantages of Flagging Out Decision to Register Ships with Foreign Registries Lower Operating Cost by Lighter Maintenance Program Less Stringent Enforcement of Safety Standards imposed by Registry Less Regulatory Control and Avoidance of Bureaucracy Exemption of Income Tax; ○ Required to pay Annual Tonnage Tax Fee and Registration Fee Easy Accessibility/Exit to/from Flag State No Restriction on Remittance of Ships’ Earnings to Other Country No Restriction on Capital Flow ○ Flexibility to raise money with Low Interest Rates for Ship Investment Activities Lower Crew Cost or Manning Requirements ○ More Choices in International Crew Market ○ Not Subjected to National Wage Scales ○ More Flexible Manning Rules HSSE (Health, Safety, Security and Environment) Studies and Implements Practical Aspect of Environmental Protection, Health, Security and Safety at Work Quality Management to form HSSEQ or QHSSE Aspects of HSSE Management ○ Health Assurance of Crew and Other’s Physical, Mental and Social Well-Being ○ Safety Ensure Crew are Protected from Unintended Accidents that are likely to cause Harm ○ Security Protection of Individuals and Assets against Deliberate Threats and Criminal Activities ○ Environment Protection of Environment by reducing Air, Water, Land and Noise Pollution Two Types of HSSE Activities ○ Regulatory Driven Complying with Relevant Conventions and Implementing Suitable HSSE Measures ○ Market Driven Doing more than what is Required by Conventions  Factors Affecting HSSE ○ Flag State/Ship Registry Regulates Vessel, Crew and Management Standards ○ Ship Owner Decide whether Technical Standards of Ships will be above Minimum Requirements Select Crew or Management Company for Crew and Operation Decisions regarding HSSE Company Policies ○ Shipbuilder Controls Technical Standards ○ Cargo Owner Pay for Transport Service = Safety of Vessel Operation Undertake Independent Assessments of Safety of Ship Ship Inspection Report (SIRE) ○ Insurer Part of Risk on behalf of Ship Owner Undertake Independent Assessment of the Ship ○ Ship Management Company Responsible for: Crewing, Operation and Maintenance on behalf of Ship Owner ○ Port State Responsible for: Safety in Port and Harbour Approaches Control Safety Standard of Vessels Deny Access for Substandard Vessels HSSE Cost Optimisation Preventive Costs - Cost involved to Implement HSSE Measures ○ Developing HSSE Measures or Programmes ○ Safety Equipment and Installation ○ Inspection and Maintenance of Safety Equipment ○ Ship Inspection ○ Training Cost of Losses - Economic Consequences that are more likely to be avoided due to reduced risk ○ Total Loss of Ship/Replacing Ship ○ Degraded Operability/Operation causing Unscheduled Delays ○ Loss of Future Income ○ Repair Cost/Fines and Penalties/Compensation to 3rd parties ○ Negative Publicity Risk Assessment Risk Matrix as Decision-Making tool to assess various Risk Conducts a Risk Assessment ○ Identification of Hazards and Risks Substance, Situation or Practice that has potential to cause harm ○ Risk Estimation Probability Frequent (5) - Likely to Occur often Probable (4)- Will Occur several times Occasional (3) - Likely to Occur a few times Remote (2) - Unlikely but possible to occur Improbable (1) - So Unlikely, can be assumed will not occur Severity Catastrophic (4) - Death or Major Asset Loss Critical (3) - Severe Injury or Illness or Major Asset Damage Marginal (2) - Minor Injury or Illness or Minor Asset Damage Negligible (1) - No, or Less than Minor Illness, Injury or Asset Damage Risk Assessment Matrix = Probability x Severity ○ Control the Risk Avoid Changing Plans to Circumvent Occurrence of Risk E.g.: Alternate Route instead of Pirate Infested Routes Mitigate Reducing Probability or Severity of Risk E.g.: Wearing Anti-Slip Boots Transfer Transfer Risk to a Third Party E.g.: Buying Marine Insurance Accept Retain Risk and deal with it after it has Occurred Applies only to Minor Risk where not doing anything to control is better than wasting resources E.g.: Minor Cuts or Bruises Incidents where there is noy way to control risk E.g.: Act of God All Risk that are not Mitigated, Avoided or Transferred are accepted by default Organisational Culture Common Set of Norms and Values within an Organisation Safety Culture - Collection of Norms and Values that employees share in relation to workplace risks Systematic Effort and Genuine Concern for Safety must be Rooted in a Safety Culture of Organisation Developing Organisational Culture Application of Concepts on Safety ○ Symbols: Words, Gestures, Pictures or Objects that carry a particular meaning Warning Signs, Posters, Slogans ○ Heroes: Persons who are Highly Praised and Serve as models of Behaviour People Rewarded by their Peers and Organisation for effort towards safety ○ Rituals: Collective Activities (Socially Essential) Scheduled Safety Meetings ○ Values: Attitude within an Organisation Taking the time to do the job right because shortcuts are not worth risk of painful injury Deeper Structure of Culture is not Immediately OBservable by Outsiders ○ “The Way we Do Things Around Here” International Maritime Organization (IMO) Global Standard-Setting Authority for Safety, Security and Environmental Performance of International Shipping ○ Regulatory Framework that is Universally Adopted and Implemented ○ Ensure Operational Efficiency through Agreed Regulations, Adopted and Implemented on an International Basis Forum where Conventions are Created ○ Non-Legal Policies containing: Article - Particular Point Annexes - New Articles/Chapters Regulations - Rules that Control way things are done Conventions by IMO Safety Security Environment Safety of Life at Sea International Ship and International (SOLAS) Port Facility Security Convention for the International Convention on (ISPS) Prevention of Standards of Training, Pollution from Ships Certification and (MARPOL) Watchkeeping for Seafarers International Ballast (STCW) Water Management Convention on the Convention International Regulations IMO 2020 for Preventing Collisions at Sea (COLREG)  Implementation Process of an IMO Convention ○ Drafting Based on Major Accident and Research Finding, Any Member State can Propose the need for a new Convention Council will Review the Proposal and decide to accept it Draft Convention prepared by a Committee Committee will recommend a Date for a Conference for Adoption of Convention ○ Adoption Draft Convention first Circulated to all Member States for Comments Committee Examines the Comments to amend the Draft Convention before Conference Conference, amended Draft Convention is Presented to Member States Majority Member States Present Agree with Final Draft of Convention it is Formally Considered Adopted ○ Ratification After Adoption, it needs to be Ratified IMO sets a deadline for Ratification of the Convention 3 Ways for Members to Ratify Signature ○ Sign Convention without Reservation Signature Subject to Ratification/Acceptance or Approval ○ Sign Convention with Remark such as Subject to Ratification ○ States only Ratified the Convention when it submits a document called “Instrument of Ratification” to the Depository of the Convention Accession ○ State become a Party to a Treaty which it did not sign whilst the treaty was open for Signature ○ Entry into Force Ratified by Required Number of States with Required Total Tonnage, enter into force after a Predefined Time Number of States and Tonnage Percentage is decided by the Committee and Agreed by Members during Adoption Process Convention becomes Legally Binding on Ships that are Registered to Member State and have the right to Enforce the Convention BIMCO Standard forms for Bill of Ladings E.g.: BIMCHEMBOYBILL 2016, COAL-OREVOYBIL, MULTIDOC 2016 Bill of Lading and Charter Party (Standard Forms) Aspect of Buyer-Seller Agreement is to decide who will arrange for Sea Transport (INCOTERMS) ○ Person Responsible is the Shipper Contract of Carriage by Sea Act (COGSA) ○ Governs Shipper and Shipowner ○ Shipowner is required to issue a Bill of Lading to Shipper for Cargo Loaded on Ship Charterparty ○ Employ Whole Ship from Shipowner ○ Shipper is Regarded as Charterer ○ Charterer can be a Middleman between Shipper and Shipowner Advantages of Standard Forms ○ Fixed Clauses improve Business Efficiencies by: Eliminating scope for negotiating clauses which saves Legal and Negotiation Cost and Speeds Up shipment process Reduce Misunderstanding of Terms/Clauses set out in Contract and avoid Potential Arbitration and Legal Disputes Improve users’ Familiarisation of Terms or Clauses and Confidence in using the Form Baltic Exchange Membership Organisation and Freight Market Information Provider Reports Daily Freight Indices for Different Ship Sizes and Types ○ Baltic Dry Index (BDI) is an Assessment of: Average Price of the Past Month to Ship Raw Materials On 50 Shipping Routes By Ship Size Uses of Freight Indices ○ Reflects latest Freight Rates Basis of Negotiation of Freight Rates between Charterer and Shipowner in a Charterparty Predictor of Economic Activity Predictor of other Shipping Markets International Chamber of Shipping (ISC) Association representing the Interest of Shipowners and Operations ○ Members Represent 80% of World Merchant Fleet Concerned with all Technical, Legal, Employment Affairs and Trade Policy Issues that Impact International Ship Operations ○ Assess and Advise Commercial and Implementation Viability of Conventions by engaging with Intergovernmental Bodies (IMO) ○ Guide Shipowners and Operators on Complying with Conventions Developing and Recommending Best Practices Views Best Practices as an Essential Complement to International Regulations and are required readings by Companies and Seafarers United Nations Conference on Trade and Development Responsible for dealing with Economic Development Issue by Providing Policy Recommendations Publish Reports which provide Evidence-Based Policy Analysis to help countries improve Economic, Social and Environmental Outcomes Maritime Transport ○ Recurrent Publication since 1968 - Aims at Fostering Transparency of Maritime Markets and Analysing Relevant Developments ○ 4 Sections International Maritime Trade and Port Traffic Analyse and Predict Maritime Trade Volume and Port Throughput and Trends Maritime Transport Services and Infrastructure Supply Analyse Supply of Ships, Freight Rates, and Shipbuilding/Recycling Performance Indicators Analyse and Report Shipping and Port Performance, and Environmental Indicators of the Industry Legal Issues and Regulatory Development Review Recent and Future Development on Legal and Regulatory Landscape of the Industry International Labour Organisation (ILO) Labour Standards and Develop Conventions Promote Rights at Work ○ Encourage Decent Employment Opportunities ○ Enhance Social Protection ○ Strengthen Dialogue on Work-Related issues Maritime Labour Convention (MLC) ○ International Labour Organization Convention established in 2006 ○ Ratified by 96 Member State (91% of the world merchant fleet) ○ The Code (5 Titles) Minimum Requirements for Seafarers to Work on a Ship Conditions of Employment Accommodation, Recreational Facilities, Food and Catering Health Protection, Medical Care, Welfare and Social Security Protection Compliance and Enforcement