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U.S. Cracks Down on ‘Repeat Offenders’ on Vessel Safety

The U.S. Coast Guard has published a policy in the Federal Register that seeks to crack down on so-called repeat offender shipowners.

Under the policy, which took effect on September 1, a vessel that has been detained three times within the previous 12-months because of a failure to implement the safety management system required by the International Safety Management Code will be subjected to an expanded ISM examination on its next U.S. port of call.

If the ship fails the test, it will be banned from U.S. waters “until specified actions are completed to the satisfaction of the USCG.”  The ban is linked with the vessel’s International Maritime Organization number, and would follow it regardless of change of ownership, class or flag.

The U.S. policy builds on a flag-centered ban regime in place among Paris Memorandum of Understanding states, which uses different criteria for individual ships but is based on the same concept.  Together, the two ban regimes are now expected to set an international benchmark.

The policy goes beyond magic pipes: it encompasses all areas subject to the SMS regime.  So, for instance, one magic pipe-related detention in the U.S. or elsewhere coupled with two other ISM infractions anywhere in the world within a 12-month period can cause a ship to be banned from U.S. waters. 

Maritime regulatory consultant Dennis Bryant said: “Banning sub-standard vessels in this manner reflects the natural evolution of port state control.  As long as such measures penalize only vessels whose operation places the crew, cargo, ship, and environment at unacceptable risk, they will provide reputable owners and operators with a level playing field in their commercial endeavors.”

The ban would be issued if the USCG port state control officer establishes that the shipowner, senior crew or the flag state administration failed to correct substandard conditions and implement an effective SMS.

Blank Rome partner Jonathan Waldron said: “So the message to owners is very clear: if you do not have a compliance regime and safety culture, you would land in trouble in the U.S.  I do not see this being a problem for quality owners.”

The International Convention for the Safety of Life at Sea allows a port state to inspect vessels prior to entering ports and to deny entry to those not in compliance.  Empowered by this authority, the USCG has routinely banned ships on an ad hoc basis.

“However, there was no mechanism to effectively and consistently respond to repeat offenders,” the Federal Register notice states.  Mr. Waldron said the new policy would bring clarity on when to ban a vessel and how to get the ban lifted.

A recent instance of a foreign ship banned from U.S. waters involved a magic pipe investigation. The Awilco-owned, NIS-flagged tanker Wilmina was banned for three years in May this year as punishment for a pollution infraction.  The USCG described it at the time as an “administrative remedy.”

Counsel acting for Wilmina seafarers hailed the three-year ban as a victory for the owner and crew, as it meant the criminal case was dropped and no seafarers were detained as defendants or witnesses, which normally happens in such cases.

USCG records show that two other foreign ships are undergoing similar bans from U.S. waters at present: Cosette and Island Intrepid.

"U.S. Cracks Down on ‘Repeat Offenders’ on Vessel Safety," by Rajesh Joshi, first appeared in Lloyd’s List on November 4, 2010. www.lloydslist.com.

Reprinted with permission from Lloyd's List.