I really liked the Think Tank format at the Workboat Show this year. We had a great discussion about Third Party Option vs. Coast Guard option, Coast Guard OCMI authority to defer enforcement, the level of intensity of audits under Subchapter M, and much more.
I highly recommend this excellent book to anyone interested in continuous improvement in the maritime industry. The lessons to be learned are many, and apply to vessel personnel, shoreside staff, ocean going vessels, inland vessels, regulators, and their agents (TPOs). We talk a lot about lessons learned, and learning from our mistakes. This book provides an excellent opportunity to learn from others' tragic mistakes. If we don't learn from mistakes, such as not "knowing your equipment," we are bound to repeat them.
If you are still not prepared, or have any questions, or would like to discuss getting your vessel surveyed for Subchapter M compliance, or would like to know more about the TVR/Compliance Management System, please don't hesitate to give us a call.
There are only 14 months left to get ready. If you need assitance with Regualtory Compliance Surveys, Towing Vessel Record/ Compliance Management Systems, Towing Safety Management Systems, or our Subchapter M Self-Study Course, please don't hesitate to contact us.
Congratulations to E.N. Bisso & Son for its recent ISM certfication by ABS. The company has worked hard to achieve this goal with VP Mike Vitt leading the effort for the company. E.N. Bisso & Son partnered with Maritime Compliance International a decade ago. When they made the decision to seek ISM certification we developed their safety management system (SMS) into the ISM format, provided safety management workbooks for all captains to complete and learn the company's SMS, and conducted quarterly visits to each vessel to ensure steady progress. The ISM manual was approved with no deficiencies, the Document of Compliance was issued to the company following a successful audit, and now the vessels are being audited and issued their Safety Management Certificates. It is a pleasure to work with such dedicated clients.
The items discussed above apply to all towing vessels, regardless of the compliance option. For those companies choosing the Third Party Option, they have a number of other considerations. More on that next time.
We now have 20 months to get into compliance with Subchapter M. Hopefully, you have a solid plan and are on track.
On October 4, 2016, I attended a joint Subchapter M conference in New Orleans put on by the American Waterways Operators (AWO) and the U.S. Coast Guard. The AWO representative gave a great overview of Subchapter M, with particular emphasis on issues of concern to industry that they have been working on with the Coast Guard. Both parties should be commended for their efforts and results.
Coast Guard comments
The presentation by the Coast Guard was given by Captain Verne Gifford, Chief of Inspections and Compliance at Coast Guard Headquarters. Much of Captain Gifford's presentation focused on the Coast Guard's efforts to incentivize the Third Party TSMS option. The Coast Guard is concerned about manpower issues to inspect the 5,719 towing vessels in the U.S.
I took the opportunity during the Q&A session to ask Captain Gifford to address some of the concerns I had heard from industry in response to the latest round of Subchapter M frequently asked questions (FAQs) issued by headquarters. I told the Captain that the FAQs seemed so one-sided in their attempt to incentivize the Third Party TSMS option that I have heard comments such as, "I don't even think the Coast Guard wrote these," and "This sounds like intimidation!" Captain Gifford assured us that it was not the Coast Guard's intent to intimidate anyone, one way or the other, but that the Coast Guard does have concerns about available manpower to get the inspections done in a timely fashion. He estimated that half of the towing vessel fleet will go with the Coast Guard option. Other senior officers on the panel chimed in and explained that currently, inspections in the Eighth District are scheduled several weeks in advance, and sometimes only a few days. They stated, if you can deal with that, the Coast Guard option may be for you. Rear Admiral Callahan, Commander of the Eighth Coast Guard District, added that if you want to go with the Coast Guard option, they would do their best to accommodate you, but he just couldn't promise how timely they would be in doing so.
Biggest takeaway
Rear Admiral Callahan also provided the biggest takeaway for me at the end of his introductory remarks. He said he was going off-script when he gave us three things to ponder (paraphrased): 1. Does your safety management system (SMS) foster compliance, or a safety culture? 2. Is your SMS implemented, or is it just sitting on the shelf? 3. If your SMS is implemented, is it implemented across all levels of the company: top management, middle management, and on the deck plates?
Normally, I might consider these comments standard Coast Guard SMS philosophy, but taken in the context of this conference where much of the talk was centered on going with the Third Party TSMS option, I took it as a warning. A warning to towing vessel companies to ensure, before they jump on this Third Party TSMS option, that everyone in the company is ready, from the deckhands on up.
I like to warn clients to beware of the sales pitch. I guess sales pitches come from all angles these days.
33 CFR 105.255(a)(4) implies the secure area should be fenced, but it doesn't actually say that. If some secure areas within facilities were approved without fencing or additional access control, the new verbiage for Risk Group A facilities tacked onto this citation may bring some access control measure for secure areas into question.
Please check out the following webpage where we have posted our Subchapter M products and services. Let us know if you have any specific concerns or needs. Thank you.
The Subchapter M Final Rule is finally here. Come join us for the Subchapter M Workshop in New Orleans on September 23.
According to informed sources we should see the Subchapter M final rule within a few months. Despite the fact that the proposed rule has been published for years, there is a great deal of misinformation and misunderstanding. Some operators are willing to pay consultants to tell them what to do, and others will try to make sense of it on their own. Still others will just wait until the Coast Guard shows up and see what happens.
There is no substitute for educating yourself. Understanding the ins and outs of operating as an inspected vessel empowers operators to protect themselves from costly compliance errors that arise from well intentioned, but misinformed, individuals. I have heard a great deal of misinformation lately on Subchapter M.An audit should not include a comprehensive manual review and comprehensive inspection of a vessel. These three functions should be kept separate and distinct in order to preserve the quality of the audit.
My experience as a Coast Guard marine inspector in verifying audited programs, was all based around International Safety Management (ISM). As proposed, Subchapter M offers a Towing Safety Management System (TSMS) option structured to look very much like ISM. For those readers unfamiliar with how ISM works, these are the basics of the program. Once a company chooses, or is required by regulation, to adopt ISM, a safety management manual is put together in accordance with the ISM Code (hopefully not bought off the shelf). The Company then contracts with a "recognized organization," such as an authorized classification society, who will review the manual, audit company and vessels, and issue the international certificates on behalf of the flag. This process is included in Subchapter M, however, the "recognized organization" is referred to a "third party organization."
The company takes time to refine their processes, and their manual, and works toward implementation. The SMS manual is then submitted to the recognized organization (authorized classification society) for review and approval. During this desktop review, the classification society makes sure that it includes all the requirements of, the ISM Code, the flag state, the International Maritime Organization (IMO), and of that particular classification society. The safety management manual is then "approved." A comprehensive manual review does not occur every time the vessel is audited.
Once the manual is approved, audits are scheduled. First an office audit to ensure the company is following the requirements of the company's SMS manual. If the company passes the audit a Document of Compliance (DOC) is issued to the company. There is no equivalent to the DOC in Subchapter M. Then comes an audit of each vessel to ensure that the vessel is following the requirements of the company's SMS manual. The main players in this process are the master of the vessel and the auditor. Often times no one else from the company is present. If the vessel passes the audit, a Safety Management Certificate (SMC) is issued to the vessel. There is an equivalent to the SMC in Subchapter M, as it calls for a Towing Safety Management Certificate (TSMC) to be issued to the vessel.
Having been involved with towing industry audits since my retirement from the Coast Guard, I have found it strange that an "audit" usually includes an entire plan review and a comprehensive inspection of the vessel. During an ISM audit the auditor will walk-through the vessel with a focus on verifying certain items from the SMS manual policies and procedures. However, an entire inspection, or survey, of the vessel is not conducted. That is an entirely separate function conducted by flag state inspectors. These two separate processes are distinct in Subchapter M, as the proposed Subchapter calls for, if chosen, the use of third party surveyors to conduct the flag state inspection (survey) of the towing vessel, in addition to the use of third party auditors to audit implementation of the TSMS. However, the Subchapter does allow for getting the vessel survey items done under an audited program.
Hopefully, Subchapter M will follow ISM in that the TSMS manual will be reviewed and approved up front, and the survey function will be kept separate from the audit function. It is essential to not bog down an auditor with such repetitive duties, and allow him to focus on the task at hand: ensuring the vessel is being operated in accordance with the TSMS policies and procedures applicable to the vessel.
Choose wisely.
Towboat captains take pride in their craft: driving boats. That's what they enjoy, and that's what they signed up for. They are respected for their ability to handle boats, and are paid well for their experience. So why then do we put a big fat telephone book of a safety management system (SMS) on the boat and expect the captains to actually follow the procedures in that the telephone book?
The truth is, a safety management system for towing vessels does not have to be large and cumbersome, especially for small and mid-size companies. The format of having purpose, scope, definitions, and responsibility preceding every procedure may not be the best approach. If you are running a shipping company with 80 vessels across the globe, and offices on four continents, maybe that is the way to go. But for small and mid-sized towing companies, for the most part, these items can be addressed up front, significantly reducing the size and complexity for the end user.During a recent survey a vessel's flexible fuel lines were inspected by a surveyor, and one was found to be chafed almost all the way through. The vessel was dangerously close to experiencing a spraying fuel fire. The real shame was, there were stacks of completed daily checklists on board with "fuel lines" checked off.
The sVGP is once again on the back burner. The moratorium on vessels less than 79 feet has been extended. According to Sen Vitter's officer, a compromise was reached while working on a larger bill regarding vessel discharge requirements. The language was inserted into the Howard Coble Coast Guard and Maritime Transportation Act of 2014 (S.2444), which extends the expiration date of the moratorium for vessels less than 79 feet from December 18, 2014 to December 18, 2017. That bill was signed into law by the President on December 18. Under the moratorium, NPDES permits are not required for discharges incidental to the normal operation of commercial fishing vessels and other non-recreational vessels less than 79 feet, except for ballast water. I have verified this with the folks at EPA Headquarters and they have asked that I spread the word. Merry Christmas.
Don't let your guard down. I have noticed many in the towboat industry are suffering from Subchapter M fatigue. Understandably, many are sick of the constant hype and have become desensitized at best, and disgusted at worst, at the mention of Subchapter M. I have deliberately backed off from bring it up myself, but the truth is the industry should not totally let their guard down either. According to the regulatory agenda, as of this writing, the expected publish date for the Subchapter M Final Rule is still March 2015. In anticipation of the possibility that Subchapter M will become final in 2015, don't miss out on this important presentation: Subchapter M - Top 10 Things You Need to Know. You can attend this presentation that I will be giving at the Pacific Marine Expo in Seattle on November 19; or the panel discussion at the International Workboat Show in New Orleans on December 3. If you haven't had a chance to go through the Proposed Rule yet, this is your chance to get the highlights. If you've been well versed and are suffering from Subchapter M fatigue, this is your chance to get back in tune, just in case.