Ship Registry

How ship registries and others are coping during the pandemic

By Maria Dixon, CEO, ISM Shipping Solutions Ltd

There is no need to introduce to the reader Covid-19, nor to mention the long days and nights you and your family may have been in confinement at home. Some say to protect ourselves, and to avoid the escalation of numbers of mortalities that could multiply while, others say that this confinement is illegal.

However, one of the industries that have not stopped is the shipping industry, the strong link in the chain together with the trucks helping the food industry to feed many millions of people.

One of the main players within the shipping industry are the Flag States also known as Ship Registries & Maritime Authorities, which are usually assisted by previously duly accredited Recognised Organizations (ROs) and Security Recognised Organizations (SROs) that on behalf of the Flag State take up the inspections, survey and issuance of many Statutory’ Certificates of vessels.

Covid-19 took us by surprise. IMO Secretary-General Kitack Lim issued a statement addressing the effect of the coronavirus pandemic on the shipping industry and the global supply chain on which he said: “… Again, I urge a practical and pragmatic approach, in these unusual times, to issues like crew changeovers, resupply, repairs, survey and certification and licensing of seafarers.” .

Together with the IMO, other international organisations and associations, like ITF, WHO, International Chamber of Shipping, INTERTANKO, etc, have been working together, to find a solution to the multiple problems, delays and issues the industry is experiencing.

Prompt Action

Most of the registries have acted promptly in taking unprecedented measures to mitigate the impact to ensure and facilitate that their ships will sail through Covid-19 with a minimum of interruptions and consequences to ports, operators, registrars, ROs and seafarers.

Since a large number of the registries are ISO certified, Flag States needed to establish and document their procedures in order to be certified. However, since then, there have been new practices in place such as registrars are now working from home, and electronic signatures implemented at a fast pace. Therefore, all the new procedures have had to be added to their existing ISO manuals. Months ago, it would have been unthinkable for a Ship Registry to do this.

Recently, I assisted a vessel to update documentation as they were facing their periodic vetting. The operators had to ensure their ship remained approved to be chartered for future trade. The registry, in this case Panama, in less than 4 hours returned my petition, made by email, with an electronic certificate, ready to be printed and placed on board.

Therefore, the registry overcame the challenges that ship operators face to comply with regulations and their trading pressures.

Registries have moved quickly approving new measures such as certificates and surveys being extended for up to 90 days after the expiry date.

Pressing issues

Although these measures have their detractors, I believe that, once this is all over, the industry will find, as always, an equilibrium to deal with the pressing issues. Although our industry is very traditional, these last months have proved differently. We should trust in the common sense of duty and responsibility that managers, operators and regulators have demonstrated with the success in their methods of dealing with similar problems for many centuries. If there is an avalanche of work for registries, yet to come, we should remember that on 20 February every year, Blue Cards and Certificates worldwide need to be renewed for thousands of vessels and registries always accomplish their deadlines and tasks.

One of the things I can foresee, without a crystal ball, is the need for more ship’s surveyors and auditors; they are going to be very busy.

Worldwide, every month there are 100,000 seafarers approximately needing, to comply with international regulations, to change over, disembark due to holidays, end of contract, accidents or other circumstances.

However, one of the main worries across the tables of the industry these past weeks, has been the crew welfare and the impossibility of crew changes. 

I personally know of a young officer in a ship, he was due to leave on 23 March, plans were after his contract ended, to fly from Argentina to Panama. That very same day in Panama, the International Airport closed. So, he went with his ship all the way to Las Palmas, in the Canaries, waiting for a solution; after days of waiting without a hope, the vessel sailed to UK. Three days after they sailed, Spain just lifted its ban on crew changes, it was too late for them. However, even with Spain opened, or even if UK allows crew changes, our young officer will have to remain on board, as Panama is still closed. We speak daily, I try to explain that here on dry land, nothing is how he left it. He is safer living in a good healthy clean ship. The thought of disembarking and going on a taxi, train then to an airport and a plane is not the safest solution to go home at the moment.

Crew currently must be desperate to leave their ships, but onboard there is no need for virus protection and their life and social gathering among them is business as usual. They are going to have a shock when they disembark and notice the newly imposed social distancing. However, if the ship has infected crew or passengers, the scenario is completely different.

Global changes

Covid-19 has brought many changes to the life we used to live. The whole planet is suffering, and the shipping industry moving over 80 percent of all worldwide goods has received a hard impact. We need to reassure and maintain that our seafarers are healthy and in high spirits, because they are the main asset, without them, there would be no shipping.

What major temporary measures have been taken to allow ships’ documentation to trade during the global restrictions imposed by Covid-19?

• 30 June 2020 is the date that most registries agreed and are using as limit for any extensions, based on a period of grace of 90 days
• Registries have enforced and put in place mandatory remote work & telework. There is a minimal presence at the office, and only for exceptional cases, like in the case of the Public Registry in Panama, where mortgages are still being received and registered.
• Some surveys are being done remotely, only by special arrangements and on a case-by-case basis
• Issuance of extension/postponement under force majeure or unforeseen exceptional circumstances and administratively issues of short-term statutory certificates for up to three months without prior approval of the registry. A physical survey must be conducted at the earliest opportunity.
• Other surveys and most certificates for ships will be extended up to 90 days
• Seafarers certification, including medical certificates will also be extended for up to 90 days
• When Seafarers’ Employment Agreement (SEA) have been concluded, a new “SEA” should be drawn.
• For ISM & ISPS, cases where it is not physically possible to attend on board and a remote audit is not practicable. Extensions of up to 90 days will be granted, followed by a physical audit at the earliest opportunity
• Require a Special risk assessment for ships requesting Flag States to grant temporary dispensations to sail with fewer seafarers than stated in their Minimum Manning certificates (specially in cases with crew casualties on board)
• Insurers and P&I Clubs are issuing confirmation to Flag States on the coverage to seafarers to include Covid-19 related issues and even extending their coverage where necessary.
• ISM Code regulation 12.1 allows up to 15 months between audits in exceptional circumstances. Flag States are issuing on a case-by-case basis authorisations to extend the period beyond 15 months.
• Many registries are receiving applications and renewals, most of them are being processed electronically. The stronger impact is the delays on couriers when registries sent the documentation abroad.

Electronic

The Covid-19 has made countries embrace new electronic services, before they are scheduled, such is the case of Panama that on 13 April started issuing Electronic Provisional “Patentes” (ships registration certificates) and Radio Licences. The above list shows common changes found on most of the flags, not only in the Caribbean, but worldwide.

IMO and other international bodies have played a fundamental role while Flag States and Port State Control have organised all the schemes offering flexibility and facilities to operate ships with minimal disruption.

Currently there is a lobbying campaign to declare seafaring a key personnel profession and asking to tackle the crew confinement urgently as the crew morale and health may be compromised.

I seriously believe that all the paperwork backlog created during these months of confinements will be a burden for the industry until at least after the New Year, where there will be more or less of a return to a calmer scenario and have all documentations up to date.

However, the seafaring confinement and increased isolation may produce high levels of anxiety, exhaustion and stress, and those may take longer to cure than a simple high pile of paperwork.

Obviously, all will depend on how long Covid-19 will continue restraining us and our activities. Stay Safe, your family, your country and the industry need you.

© Maria Dixon / ISM Shipping Solutions Ltd, London 2020.

About the author

Maria Dixon is the CEO of ISM Shipping Solutions Ltd in the UK, she has been in shipping registration and accreditation for 40 years, and is an expert in Panama shipping. She has done benchmark studies for the Panamanian Registry prior to the IMO voluntary audit. Maria was elected President of WISTA-UK during 2008/14 and in 2019 received the Panama Maritime Lifetime Achievement Award.