Regulation Update 2018/19 - Loss Prevention - The Standard Club

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Regulation Update 2018/19 - Loss Prevention - The Standard Club
Industry expertise

                                     June 2018

                                     Loss Prevention
                                     Regulation Update
                                     2018/19

                                                                                          the relevant regulation or any other survey if the
                                      Introduction
                                                                                          Administration deems it to be reasonable and
                                     The year 2017 was noteworthy for several             practicable, taking into account the extent of
                                     environmental regulations. Important decisions       repairs and alterations being undertaken.
                                     from the regulatory front on the ballast water
                                     management convention, polar code and 2020           Members with existing cargo ships 150≤gt
Regulation Update 2018/19 - Loss Prevention - The Standard Club
Industry expertise

                     International Maritime Dangerous Goods (IMDG)         2011 ESP code – MSC.405(96) – Amendments to
                     code – MSC.406(96) – Amendment 38-16                  the ESP code
                     The latest amendment (38-16) to the IMDG code         The 2011 ESP code, as required by SOLAS
                     entered into force on 1 January 2018. It includes     XI-1/2, covers mandatory survey requirements
                     a significant number of changes to the code and,      for oil tankers and bulk carriers (including ore
                     as such, the IMO had to fully revise volumes 1        and combination carriers) of 500gt and above.
                     and 2 of the code (2016 edition). The                 The code is regularly updated to ensure
                     supplement volume remains the same as the             harmonisation between the IMO and IACS
                     2014 edition.                                         requirements.

                     Members engaged in carriage of packaged               This set of amendments refers to the
                     dangerous goods are required to comply with           recommendations for entering enclosed spaces
                     the latest amendments from 1 January 2018.            aboard ships set forth under resolution
                     Members are also recommended to refer to our          A.1050(27), so as to promote safe access by
                     publication Standard Safety: Better Box Booking       surveyors carrying out the surveys on oil
                     to safeguard their ships against misdeclared          tankers and bulk carriers on/after 1 January
                     container cargo incidents.                            2018.

                     Convention on Facilitation of International           Members are reminded that in order to enable
                     Maritime Traffic (FAL) – FAL 40 – Revised FAL         the attending surveyors to carry out the survey,
                     convention                                            provisions for proper and safe access should be
                     The FAL convention, first adopted in 1965, aims       agreed and the surveyor(s) should always be
                     to harmonise procedures for ships’ arrival, stay      accompanied by at least one responsible
                     and departure from port. It includes mandatory        person, assigned by the owner, experienced in
                     standards and recommended practices on                tank and enclosed space inspection.
                     formalities, documentary requirements and
                     procedures which should be applied on arrival,
                     stay and departure to the ship itself, and to its      Regulations which came into force
                     crew, passengers, baggage and cargo.                   on 1 March 2018

                                                                           MARPOL annex I – MEPC.276(70) – Revision to
                     The revised annex includes mandatory                  form B of the supplement to the IOPP certificate
                     requirements for the electronic exchange of           Amendments to form B of the supplement to
                     information on cargo, crew and passengers. The        the IOPP certificate (sections 5.1, 5.2, 5.3 and
                     IMO Standardized Forms (FAL forms), which             5.5), given in the appendix to MARPOL annex I,
                     cover the IMO general declaration, cargo              were adopted at MEPC-70 to remove obsolete
                     declaration, ship’s stores declaration, crew’s        entries (concerning design/arrangements that
                     effects declaration, crew list, passenger list and    no longer exist, such as Clean Ballast Tank
                     dangerous goods have also been revised.               (CBT)) and to simplify the current entry.

                     Other revised standards cover shore leave and         Members operating oil tankers of 150gt or
                     access to shore-side facilities for crew, including   above shall ensure that the revised format of
                     the addition of a paragraph in the standard to        this certificate is issued to the vessel at the first
                     say that there should be no discrimination, in        IOPP survey on or after 1 March 2018.
                     respect of shore leave, on grounds of
                     nationality, race, colour, sex, religion, political   MARPOL annex V – MEPC.277(70) – HME
                     opinion or social origin, and irrespective of the     substances and form of Garbage Record Book
                     Flag State of the ship on which seafarers are         The revised MARPOL annex V, which entered
                     employed, engaged or work.                            into force on 1 January 2013, introduced stricter
                                                                           controls on garbage disposal, which also
                     Standards and recommended practices relating          affected the disposal of cargo residues,
                     to stowaways have been updated to include             including cargo hold washing water. However,
                     references to relevant sections of the                there were still some clarifications required out
                     International Ship and Port Facilities’ Security      of these revisions, which were adopted at MEPC-
                     (ISPS) code.                                          70. These were highlighted in the club’s web
                                                                           alert and include the following:
                     The revision aims to ensure the convention
                     adequately addresses the industry’s needs and         –– the requirement for shippers to classify solid
                     serves to facilitate and expedite international          bulk cargoes in accordance with the criteria
                     maritime traffic. The objective is to prevent            set in a new appendix as HME or not
                     unnecessary delays to ships, and to persons and          (regulations 4 and 6)
                     property on board.

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Industry expertise

                     –– the new format of Garbage Record Book              for developing Ship Energy Efficiency
                        (GRB) is split in two parts (one part for all      Management Plan (SEEMP) have been revised
                        operations related to garbage other than           through MEPC.282(70) to provide the ship-
                        cargo residues and a second part for all           specific methodology and processes that need
                        operations related to cargo residues)              to be followed for the data collection.
                     –– inclusion of a new garbage category for
                        E-waste (such as gadgets, computers, printer       The amended regulations entered into force on
                        cartridges, etc). The definition of E-waste is     1 March 2018. The data collection system for
                        mentioned in the 2017 guidelines for the           fuel consumption is applicable from 1 January
                        implementation of MARPOL annex V                   2019 for ships of 5,000gt and above; however,
                        (MEPC.295(71))                                     part II of SEEMP will have to be updated and
                     –– clarification of the term ‘Estimated amount        submitted to the Flag Administration (or a
                        of Discharged or Incinerated’, whether into        Recognised Organisation (RO) nominated by the
                        the sea or to reception facilities in the          Flag) by 31 December 2018.
                        Garbage Record Book (GRB)
                     –– additional space in the GRB to record              Reporting will take place at the end of each
                        exceptional discharge or loss of garbage           calendar year. After verifying that the data has
                        under regulation V/7.                              been reported according to annex VI
                                                                           requirements, the ship will be issued with a
                     Members are recommended to ensure that                Statement of Compliance and the data will be
                     the new format of GRB is provided to their            transferred to the IMO Ship Fuel Oil
                     ships and that the crew are aware of the new          Consumption Database, where it will be kept
                     requirements. For ships carrying solid bulk           anonymised. This will help the IMO to produce
                     cargoes, part II of GRB will be applicable. The       annual reports and evaluate the need for further
                     HME classification and declaration requirement        technical and operational measures for
                     might have a significant impact on these ships        enhancing the energy efficiency of international
                     – mainly associated with the discharge                shipping.
                     requirements that accompany the regulation. It
                     is recommended to refer to our Standard Safety        Members are recommended to refer to the club’s
                     article which highlights the challenges dry bulk      web alert and Resolutions MEPC.292(71) and
                     operators may face and focuses on the practical       MEPC.293(71) for further guidance.
                     steps that can be adopted to ensure compliance.

                     MARPOL annex VI – MEPC.278(70) – Data                  Regulations which came into force
                     collection system for fuel oil consumption of ships    on 1 July 2018
                     In order to further enhance the energy efficiency     SOLAS Ch.V/Reg.19 – MSC.282(86) – Carriage
                     of ships, MEPC-70 adopted a three-step process        requirements of ECDIS
                     to determine the technical and operational            ECDIS will be mandatory for cargo ships
                     measures that need to be taken to further             (10,000gt ≤ non-tankers
Industry expertise

                     ECDIS Implementation Schedule

                     2
                                                                    New Passenger Ships of 500 GT and upwards

                     3                                              New Tankers of 3,000 GT and upwards

                     4
                                                                                   New Cargo ships, other than tankers, of 10,00 GT and upwards

                     5                                                                           New Cargo ships, other than tankers,
                                                                                                 of 3,000 GT and upwards but less than 10,000 GT
                     6
                                                Existing Passenger ships of 500 GT and upwards

                     7
                                                                     Existing Tankers of 3,000 GT and upwards

                     8
                                                           Existing Cargo ships, other than tankers, of 50,000 GT and upwards

                     9
                                       Existing Cargo ships, other than tankers, of 20,000 gross tonnage and upwards but less than 50,000 GT

                     10
                                                                 Existing Cargo ships, other than tankers, of 10,000 GT and upwards but less than 20,000 GT

                          1 July    1 July       1 July         1 July         1 July        1 July         1 July         1 July        1 July        1 July
                          2009      2010         2011           2012           2013          2014           2015           2016          2017          2018

                     SOLAS Ch.II-2/Reg.10 – MSC.338(91) –                                passenger ships and ships operating in polar
                     Communication equipment for fire-fighting                           waters
                     teams                                                               Amendments to the STCW convention and the
                     For ships constructed on or after 1 July 2014,                      STCW code were adopted at MSC-97 to include
                     there is a requirement for carriage of at least two                 new mandatory minimum training requirements
                     two-way portable radiotelephone apparatus (of                       for masters and deck officers on ships operating
                     explosion proof or intrinsically safe type) for                     in polar waters, and an extension of emergency
                     fire-fighters’ communication. Ships constructed                     training for personnel on passenger ships.
                     before 1 July 2014 shall comply with these
                     requirements not later than the first survey after                  The implementation timeline was highlighted in
                     1 July 2018.                                                        club’s web alert on Polar Code amendments to
                                                                                         STCW. Members are also recommended to refer
                     Members are recommended to ensure that the                          to the ICS guidance on STCW training
                     fire-fighter outfits on their ships meet the                        requirements for personnel on ships operating in
                     relevant requirements of SOLAS and the FSS                          polar waters.
                     code and that any changes to the fire-fighting
                     equipment are updated on the ship’s fire control                    Members operating passenger ships need to be
                     plans.                                                              aware of the new requirements and allow for
                                                                                         more time, if needed, before personnel assume
                     2011 ESP code – MSC.412(97) – Amendments to                         duties on board in order to complete the
                     the ESP code                                                        passenger ship emergency familiarisation
                     As highlighted above, this code is regularly                        requirement.
                     updated to maintain compatibility with the IACS
                     requirements. This set of amendments covers
                     requirements related to close-up survey/                               Regulations coming into force
                     thickness measurements for oil tankers (double                         on 1 January 2019
                     hull and other than double hull construction).                      IMO Assembly Resolution A.1116(30) – Escape
                                                                                         route signs and equipment location markings
                     Members are reminded that where the crew is                         IMO Assembly 30 adopted this resolution to
                     allowed to carry out cargo tank testing during                      harmonise the SOLAS requirements on
                     renewal survey, the tank testing procedure                          shipboard safety signs and equipment location
                     specifying filling height, tanks detail and bulkhead                markings with the ISO standards.
                     being tested, has to be submitted for review to
                     the Administration or Recognised Organisation                       This will take effect on ships constructed on or
                     (RO) prior to the testing being carried out.                        after 1 January 2019 or ships which undergo
                                                                                         repairs, alterations, modifications and outfitting
                     STCW convention & STCW code – MSC.416(97) &                         within the scope of SOLAS chapters II-2 and/or
                     MSC.417(97) – Training requirements for
                                                                                         III, as applicable, on or after 1 January 2019.

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Industry expertise

                     Members are recommended to ensure that the             Contracting governments may apply the
                     new resolution should be used in conjunction           amendments in whole or in part on a voluntary
                     with resolution A.952(23) (Graphical symbols for       basis from 1 January 2018. Mandatory
                     shipboard fire control plans) for the preparation      compliance with the amended IMSBC code
                     of the shipboard fire control plans required by        requirements will commence on 1 January 2019.
                     SOLAS regulation II-2/15.2.4.                          Members who are involved in the transport of
                                                                            solid bulk cargoes should pay due attention to the
                     MARPOL annex VI – MEPC.286(71) – Information           Flag State requirements.
                     to be included in the bunker delivery note (BDN)
                     The existing BDN contains the supplier’s
                     declaration that the fuel oil supplied to the ship      Regulation coming into force
                     meets the sulphur limit of either regulation 14.1       on 1 June 2019
                     (global limit – currently 3.50%) or regulation 14.4    MARPOL annex IV – MEPC.275(69) – Passenger
                     (within emission control areas (ECAs)). This           ship sewage discharge requirements for the
                     declaration therefore prevents the supply of fuel      Baltic Sea Special Area
                     oil to ships exceeding the global limit and would      As mentioned in the club’s web alert on MEPC-69
                     clearly be an issue when that falls from 3.50% to      outcome, there will be a prohibition of sewage
                     0.50% in 2020.                                         discharge from new passenger ships (as defined
                                                                            in MEPC.274(69)) within the Baltic Sea special
                     To avoid any ambiguities during PSC inspections        area from 1 June 2019, unless the ship has an
                     or IAPP surveys, the revised BDN will replace the      approved sewage treatment plant in operation
                     current supplier’s declaration and introduce a         that meets the applicable additional effluent
                     ‘selection box’ for the ‘purchaser’s specified limit   standards for nitrogen and phosphorus in
                     value’ of the sulphur content. This means that         accordance with the resolutions MEPC.227(64)
                     even fuels with higher sulphur content than            and MEPC.284(70).
                     required by regulation 14 of annex VI can be
                     delivered to a ship where the ship uses equivalent     Members operating passenger ships in the Baltic
                     measures, such as exhaust gas cleaning systems         Sea area need to be aware of the new
                     (EGCS).                                                requirements and ensure logistical arrangements
                                                                            are in place for discharge of untreated sewage to
                     Members are recommended to make their crew             port reception facilities.
                     aware of the new requirements in order to ensure
                     that the BDNs issued on or after the entry date        Members are reminded that, other than in cases
                     comply with the new format.                            of purely accidental discharge, P&I cover for fines
                                                                            related to MARPOL violations is only available on
                     International Maritime Solid Bulk Cargoes              a discretionary basis.
                     (IMSBC) code – MSC.426(98) – Amendment 04-17
                     The amendments (04-17) to the IMSBC code
                     include new individual cargo schedules and              Regulations coming into force
                     revisions to existing ones.                             on 1 July 2019

                                                                            SOLAS Ch.II-2/Reg.10 – MSC.338(91) – Breathing
                     Four solid bulk cargoes for which a fixed gas
                                                                            apparatus for fire-fighting teams
                     fire-extinguishing system may be exempted have
                                                                            For ships constructed on or after 1 July 2014,
                     been identified and added to the list published by
                                                                            there is a requirement for compressed air
                     the IMO as MSC.1/Circ.1395/Rev.3.
                                                                            breathing apparatus to be fitted with an audible
                                                                            low-level alarm and a visual reading (or other
                     Shippers shall ensure that the test for
                                                                            device capable of warning the user) before the
                     determining the transportable moisture limit
                                                                            volume of the air in the cylinder has been reduced
                     (TML) of a solid bulk cargo has been carried out
                                                                            to no less than 200 litres.
                     within six months prior to the date of loading of
                     such bulk cargo. Additionally, the interval
                                                                            Ships constructed before 1 July 2014 will have to
                     between sampling/testing for the moisture
                                                                            comply with the revised FSS code requirements
                     content of solid bulk cargo and the
                                                                            for breathing apparatus at the latest by 1 July
                     commencement of loading is not to be more than
                                                                            2019.
                     seven days so as to ensure that the moisture
                     content of the cargo is less than its TML.
                                                                            Members are recommended to ensure that the
                                                                            fire-fighter outfits on their ships meet the
                     It also explicitly assigns the shipper with the
                                                                            relevant requirements of SOLAS and the FSS
                     responsibility to declare whether a solid bulk
                                                                            code, and that any changes to the fire-fighting
                     cargo is classified as harmful to the marine
                                                                            equipment are updated on the ship’s fire control
                     environment (HME) or non-HME.
                                                                            plans.

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Industry expertise

                     International Aeronautical and Maritime Search        Applicable ships constructed on or after the date
                     and Rescue (IAMSAR) manual – MSC.1/Circ.1594          of entry into force of the convention are required
                     The latest amendments to the IAMSAR manual            to install a ballast water management system
                     include a new section on search and rescue            (BWMS) with a view to complying with the D-2
                     operations (SAR) by maritime rescue services in       performance standard. Ships constructed before
                     areas remote from search and rescue facilities, in    8 September 2017 are required to comply with
                     times of armed conflict, and updates to the           the D-2 standard at the first IOPP renewal survey
                     section on mass rescue operations. These              on or after 8 September 2019 (Reg. B-3/10.1.1), or
                     amendments will be included in the 2019 edition       on or after 8 September 2017, in the event the
                     of the manual.                                        IOPP renewal survey is completed during the
                                                                           period on or after 8 September 2014 and prior to
                     Members are reminded that in accordance with          8 September 2017 (Reg. B-3/10.1.2).
                     SOLAS regulation V/21, an up-to-date copy of
                     the IAMSAR manual Volume III shall be placed on       If the IOPP survey per Reg. B-3/10.1.2 is not
                     board. The 2019 edition of the manual will need to    completed, then compliance with the D-2
                     be provided to the ships after its publication.       standard is required at the second IOPP renewal
                                                                           survey after 8 September 2017, only if the first
                                                                           IOPP renewal survey after 8 September 2017 is
                      Regulations coming into force
                                                                           completed prior to 8 September 2019 and a IOPP
                      in October 2019
                                                                           renewal survey was not completed during the
                     Ballast Water Management convention (BWMC)            period on or after 8 September 2014 and prior to
                     – MEPC.297(72) – Amendments to regulation B-3         8 September 2017 (Reg. B-3/10.2).
                     MEPC-72 (April 2018) adopted the first set of
                     amendments to the BWMC after its entry into           For ships constructed before 8 September 2017
                     force on 8 September 2017. The amendments             and which are not subject to the IOPP renewal
                     relate to the retrofitting schedule (Regulation       survey, compliance with the D-2 standard is
                     B-3), guidelines on scaling, and onboard testing of   required not later than 8 September 2024 (Reg.
                     ballast water management systems (BWMS).              B-3/8).
                     These amendments are set to enter into force on
                     13 October 2019.

                     Image credit IMO

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Industry expertise

                                               Regulation D-3 of the BWMC requires that BWMS                    mandatory code for approval of ballast water
                                               must be approved by the Administration taking                    management systems (BWMS code), which was
                                               into account the guidelines for approval of ballast              adopted by MEPC 72 (April 2018) and enters into
                                               water management systems (G8). The G8 has                        force in October 2019.
                                               been revised in 2016 and converted into a

                                               Members are recommended to refer to the IMO’s                    water requirements, except for accidental
                                               FAQs and club’s perspective towards BWMC                         discharges, will be discretionary (similar to
                                               implementation.                                                  MARPOL violations). In such cases, members will
                                                                                                                be required to satisfy the board that all
                                               Members are also reminded that P&I cover for                     reasonable steps had been taken to avoid the
                                               fines involving non-compliance with the ballast                  event giving rise to the fine.

      This information is published on
      behalf of The Standard Club Ltd
      by the managers’ London agents:

      Charles Taylor & Co. Limited
      The Minster Building, 21 Mincing Lane,
      London EC3R 7AG
      Registered in England No. 02561548

      Telephone: +44 20 3320 8888
      Emergency mobile: +44 7932 113573        Members requiring further information on this topic should direct their
      Email: pandi.london@ctplc.com            enquiries to either the club’s loss prevention department or the authors.
      Website: www.standard-club.com
                                               The information and commentary herein are not intended to amount to legal or technical
      Authorised and regulated by the          advice to any person in general or about a specific case. Every effort is made to make them
      Financial Conduct Authority              accurate and up to date. However, no responsibility is assumed for their accuracy nor for the
      FRN 785106                               views or opinions expressed, nor for any consequence of or reliance on them. You are advised
                                               to seek specific legal or technical advice from your usual advisers about any specific matter.
                                               The Standard Club Ltd is regulated by the Bermuda Monetary Authority.

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