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Safety of Maritime Assets – Tugged by a Pandemic Coronavirus Challenges for the Shipping Sector

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Safety of Maritime Assets – Tugged by a Pandemic Coronavirus Challenges for the Shipping Sector RISK BULLETIN ALLIANZ GLOBAL CORPORATE & SPECIALTY® SAFETY OF MARITIME ASSETS – TUGGED BY A PANDEMIC CORONAVIRUS CHALLENGES FOR THE SHIPPING SECTOR ALLIANZ RISK CONSULTING Image: Shutterstock INTRODUCTION The global impact of the ongoing coronavirus (Covid-19) In this document, Allianz Global Corporate & Specialty’s pandemic has led to imposition of unprecedented (AGCS)’ Allianz Risk Consulting (ARC) team highlights measures by governments. Businesses and industries some challenges that are unsettling the maritime industry across the world are in a state of abeyance. Shipping, and disrupting routine activities on board merchant being the backbone of international trade, is also severely vessels. It also lists key points to be considered for the safe impacted. The outbreak has affected almost all vessel lay-up of commercial vessels. types and has led to a number lying idle. It is reasonable to All of the recommendations are technical advisory expect that owners will be considering the option to lay-up in nature from a risk management perspective and may their assets to tide over the uncertain decline in not apply to your specific operations. Please review international trade. Ship-managers and ship-operators recommendations carefully and determine how they can are seeking solutions with minimum costs within agreed best apply to your specific needs prior to implementation. budgets. The safety of a vessel during lay-up and, its Any queries relating to insurance cover should be made reliability after subsequent reactivation, primarily depends with your local contact in underwriting and/or broker. on the strict implementation of recommended procedures and guidelines throughout the tenure of lay-up. CHALLENGES POSED BY THE COVID-19 change of grade/type of lube-oil technical advice should be sought from the equipment manufacturer and the PANDEMIC changeover procedures well planned and documented. If the maintenance interval is extended, the The indefinite restrictions on supply chains and manufacturer’s instructions should be followed and close international travel is causing multiple challenges for the monitoring of operational parameters implemented. maritime industry. While risks from the perils of the sea are Stocks held on sister ships may prove handy if vessels reduced for vessels waiting at anchorage or in lay-up, new have common ports of call. challenges have evolved which were not present in similar historical situations involving global economic slowdowns. DELAYS IN SURVEYS, INSPECTIONS AND SERVICING CREW RELIEF OF EMERGENCY EQUIPMENT Travel-restrictions due to the Covid-19 pandemic Classification societies are facing difficulties in arranging has made it very difficult to effect crew-change on vessels. attendance for scheduled surveys, which is affecting the The International Maritime Organization (IMO) has written validity of classification and statutory certification. The to all Member States, urging them to recognize all servicing of critical equipment may not take place at the seafarers as “key workers” and facilitate their travel scheduled interval as service engineers and technicians to and from the vessel. However, due to closed are unable to attend onboard. Shortage of work force and international borders there are limited workable options implementation of social distancing measures in the yards for crew repatriation and in many cases crews have is causing operational delays. continued working on board months after their normal The risk of infection may lead to reduced inspections by tour of duty is completed. These long tours of duty coupled Port State Control Inspectors, which, in turn, may lead to with worry for their families at home is causing physical unsafe practices and substandard conditions on board and mental fatigue among seafarers. going undetected. It is estimated that 75% to 96% of marine incidents can The International Association Of Classification Societies involve human error and fatigue is one of the major (IACS) has acknowledged the issues faced by ship-owners underlying causes. and permitted “force-majeure” extensions provisioned Adjustments in work and rest hours offers effective fatigue under their procedural requirements. IACS procedural management. Incentives in cash or kind will also have requirements allow sharing of survey resources in a positive impact on the crew wellbeing. Hiring from exceptional and duly justified cases and is subject the pool of locally available seafarers may be an option to the discretion of flag administration. in some cases that can be further facilitated by If the timeline for periodic surveys or dry-dock is extended, cooperation among the crew management companies. related communications with flag-state, class and shipyards, needs to be well documented. Risks arising SPARES AND CONSUMABLES from delays in the statutory servicing of emergency equipment (e.g. fire-fighting appliances) will require Disrupted supply chains can cause delays in the implementation of additional control measures. Adequate forwarding of essential consumables and spares, like tools and special supplies may have to be locally lubricating oils, filters and hydraulic oils, necessitating the purchased to enable the vessel’s staff to carry out checks use of alternative grades/brands in some cases. Incorrect and measurements in order to maintain the reliability use of such consumables can cause performance issues of equipment. Routine jobs involving hot-work or risk and even damage to machinery in worst case scenarios. of fire can be delayed in the interest of safety. Lack of spares on board can affect maintenance programs It is also advisable to exercise caution when using for machinery. Replenishment of critical spares can take navigational equipment like a gyro compass beyond its longer than planned. prescribed service interval. Simulation drills covering Every effort should be made to source the designated scenarios like gyro failure and steering failure can ensure grade of lubricating oil. Planned maintenance programs a faster response from crew in a contingency. should continue unabated as much as possible. For any 2 BUNKER ANALYSIS LOSS PREVENTION DURING IDLING, The operation of courier services is restricted in many STORAGE AND LAY-UP regions and it may not be possible to dispatch fuel oil samples for analysis to shore-based laboratories. This in Comprehensive plans including risk assessments covering turn may lead to consumption of bunkers without proper storage and lay-up are crucial for ensuring the safety analysis and thereby increase the risk of machinery of the vessel during downtime and its subsequent return damage. to service. An unplanned lay-up can result in a prolonged recommissioning exercise that can last for months Procedures laid out in the technical manager’s safety and may even require docking. management system manual provide detailed methodology for dealing with this situation. A IDLING AND FLOATING STORAGE comprehensive risk assessment will help in mitigating the hazards and consequences arising from use of bunkers Idling and floating storage scenarios can present an without analysis. Where available, on board testing kits opportunity for carrying out maintenance of equipment are useful for carrying out preliminary checks. Pre-bunker under continuous use but due care should be taken in analysis reports can help to address the concerns assessing risk of immobilization and response times at the regarding bunker specifications meeting the International geographic location. Prolonged storage of certain cargoes Organization For Standardization quality criteria. may require special care to prevent microbial degradation The availability of local laboratories at the port of and maintain the quality specifications e.g. biofuels/ bunkering should be checked where samples can be Fatty Acid Methyl Esters (FAME). hand carried by local agents. Where feasible, supply and use of distillate fuels can be considered. KEY POINTS • Periodic steaming for short durations to preserve PILOTAGE SERVICES main and auxiliary machinery There have been reports that port authorities are adopting • Port and starboard anchors used alternatingly remote pilotage services to protect the pilots from the risk • Marine Growth Prevention System (MGPS) and of infection. Some ship masters have also voiced similar cathodic protection systems should remain active concerns for the protection of their crew when in certain and monitored cases the pilot refused to don personal protective • Planned immobilization of the vessel should equipment. Safe navigation within pilotage waters occur only with permission from local authorities depends heavily on a good master-pilot relationship and its failure has been the cause of several maritime • Care of cargo - Risks of prolonged storage. accidents in the past. Language barriers between the crew and pilot also have a detrimental effect on the LAY-UP relationship. Remote pilotage seems to offer a ready As a good practice, a comprehensive lay-up plan can be solution in providing against Covid-19, but this could also prepared and submitted to the stakeholders for their bring an enhanced risk to safe navigation of the vessel. review. Ship-owners are encouraged to use guidance Despite successful trials, the concept of remote pilotage documents and checklists provided by classification for merchant vessels is in a developmental stage with societies when preparing this plan. The lay-up plan many unknowns. Therefore, remote pilotage services may should present a clear picture
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