the classification societies: past, present and future classification societies: past, present and...

The classification societies: past, present and future

April 22, 2016

Vittorio S. Damonte

2 Classification societies: past, present and future

Summary

1. Origin of classification societies

2. The classification societies today

a) Classification, for doing what ?

b) International organisation of classification societies

c) Monitoring of class by States

3. Conclusion : which future for classification societies ,

1. Short history of classification societies

Where did they come from ?


ORIGIN OF CLASS

► Commercial need to reduce losses of ships and cargoes

► Societies set up by marine insurers

► To meet the need of marine insurers : rating of the ships to covered by hull insurance

► First class societies

Bureau Veritas (1828)

Lloyd’s Register (1834) from the merger of the Red Book and the Green Book created in 1760

American Bureau of Shipping (1862)

Det Norske Veritas (1864)

Origin of classification societies


ORIGIN OF CLASS

► These Registered requirements are not in any way to be confused with rules which the Society may adopt from time to time determining the requirements for the classification of ships or other matters.

History of Classification - LR’s Constitution

Lloyd’s Register of Ships, 1764

► The Society, which was founded in 1760 and reconstituted in 1834, deemed it desirable to adopt the Rules (known as the Registered Rules) for the purpose of registering the Society as a body whose business is recognised under the laws of the United Kingdom as being conducted for the benefit of the community.


Creation of Bureau Veritas

► 1828 : creation at Antwerp of the « Bureau de renseignements pour les assurances maritimes » by 3 marine insurers

► Aim : to keep underwriters informed on the premiums in use in various commercial centres and at the same time to provide « a detailed description of the good and bad qualities of vessels calling the main ports of the Netherlands »


Bureau Veritas rating system

► The rating system :

3/3 = very strong ship in good condition

5/6 = ship of average trustworthiness

1/ 3 = ship of very limited trustworthiness

1/4 = ship in very bad condition

► Rating of the ship suggested by surveyors captains

► Survey free of charge for the owner

► Fees paid by the insurers (annual subscription)


Development of classification

► Commercial and economic constraints

Shipowner wanted term rating valid for a long period

Creation of the term rating and regular surveys for the ship

► Technical constraint

Publication of the first classification rules

Change in the recruitment of surveyors (shipmasters replaced progressively by marine engineers)

Creation of the technical committees


Development of public maritime safety regulations

► Samuel Plimsoll informing against the “coffin ships”

► 1876: Adoption by the British Parliament of the Merchant Shipping Act which enacted rules for minimum freeboard of the vessels

► 1890: The Merchant Shipping Load Line Act

Laid down official rules for freeboard tables and calculations

Recognised LR and BV for the assignment of freeboard

► 1907: A French Decree recognized BV and LR for the application of the 1907 Act on the safety of navigation

The classification societies today

Classification for doing what ?


Regulation of the marine safety system

REGULATION BY STATES REGULATION BY INDUSTRY

Materials

Structural strength

Machinery

Classification Rules

Safety

Security

Pollution

prevention

International

conventions


Actors of the marine safety

FLAG STATE CLASSIFICATION

SOCIETY

PORT STATE

HULL INSURER

P&I CLUB

CHARTERER

BANK

CLASS & STATUTORY CERTIFICATES


1. Classification of ships :

a private mission of providing a level of reference

standard for ship quality

2. Certification of ships :

a public mission on behalf of Governments and

marine Authorities

3. Technical assistance & consulting

Role of a classification society


DEFINITION OF CLASS

► Classification is the appraisal on the level of compliance of a vessels to the rules set up by the class society

► This appraisal is represented by class notations entered on the certificate and periodically transcribed in the society’s register

Definition of class


DEFINITION OF CLASS An example : the Etoile Orion

I [ HULL [ MACH Oil tanker ESP Unrestricted navigation [ AUT-UMS [ SYS-IBS ICE CLASS IA STAR-HULL

Ships built in

accordance with the

rule requirements

as regards its

construction and

maintenance

Ship classed after

construction

Enhanced survey

programme

Ship fitted with automated

installations enabling

machinery spaces to remain

periodically unattended

Ship fitted with an

integrated bridge

system

Ship classed for

navigation in

severe ice

conditions The structural condition of the

ship is monitored using

computerised survey data

Service

Notation


A REFERENCE STANDARD : CLASSIFICATION RULES

► The Rules published by the society give the requirements for the assignment and maintenance of classification for seagoing ships

► Aim = to protect a ship as a piece of property

► Various types of rules

Steel ships

Offshore units

Inland navigation vessels

Submarine craft

Yachts

High speed craft

Navy ships

The classification Rules


Field of the classification Rules

COVERED BY CLASS

► Materials

► Structural strength

► Main & auxiliary machinery

► Electrical installations

► Cargo installations

► Fire protection

► Intact stability

NOT COVERED BY CLASS

► Mode of propulsion

► Power of propulsion unit

► Manning

► Crew qualification

► Lifesaving appliances

► Navigational aids

► Damage stability

► Pollution prevention



Classification of ships under construction

► 5 Key steps for class society during the construction of a new ship

Technical Review of

design Plans

Inspection at

work of material

Survey under construction Attendance to trials

Issue of

Classification

Certificate, valid

5 years


► During their life, ships are submitted to regular (periodical) surveys for the maintenance of class in accordance with IACS Unified Requirements

► Within a cycle of 5 years there are :

Annual surveys

Intermediate survey

Renewal survey

► In addition occasional surveys

► Enhanced Survey Programme for bulk carriers and tankers

Classification of ships in service


Recognition of classification

« … … ships are to be designed, constructed and maintained in compliance with the structural, mechanical and electrical requirements of a recognized classification society ... »

SOLAS CONVENTION Ch.II-1, Part A-1, Reg. 3-1

« The Administration shall satisfy that the general structure strength of the ship is adequate for the draught corresponding to the freeboard assigned… A ship which is designed, constructed and maintained in compliance with the appropriate requirements of a classification society recognised by the Administration may be considered to provide an acceptable level of strength. »

LOAD LINE CONVENTION Annex I, Ch.1, Reg 1

CLASSIFICATION COMPULSORY FOR SHIPS

• Engaged in trade

• Engaged in international voyage

• Passenger ships and cargo ships ≥ 500 grt



The certification activities

► PUBLIC SAFETY RULES

► RULES SETTERS:

International Maritime Organization

Flag regulations EU institutions


► 130 Flag States have delegated their statutory activities to Bureau Veritas

► Main delegations : IMO conventions

Technical inspections of vessels

Issuance of certificates

► Delegation for ISM Code regulations

Assessment of the Safety Management System (SMS) of the shipping company by audits and reports

Periodical verifications

Issuance of DOC to the company and SMC to the vessels

► Delegation for MLC Convention

► Delegation for implementing national rules

► Interventions of class acting as RO for ships under construction and in service

The certification activities of a classification society


Statutory inspections

CONTROL OF STATUTORY REQUIREMENTS BY FLAG STATE

Cycle of 5 years

- Annual survey

- Intermediate survey

- Renewal survey

Enhanced surveys

INSPECTIONS CERTIFICATES

Occasional survey

Valid 5 years

- Cargo ship safety construction

(SOLAS)

- Load Line

- Pollution prevention

Valid 12 months

- Passenger ship safety (SOLAS)


False perception on class : what class is not doing

► Class surveyors are not

permanently on board

the vessel

► Class survey regime

does not cover

the whole ship

► Class does not

guarantee the ship’

seaworthiness

► Class is not the

industry policeman


International organisation of classification societies

http://www.eagle.org/eagleExternalPortalWEB/appmanager/absEagle/absEagleDesktop?_nfpb=true&_pageLabel=abs_eagle_portal_directory_page

http://www.veristar.com/wps/portal/marinedirectory

http://www.ccs.org.cn/ccswzen/

http://www.crs.hr/en-us/directory.aspx

https://www.dnvgl.com/maritime/

http://www.irclass.org/contact-irs

http://www.krs.co.kr/eng/intro/organ/I_organ_dir.aspx

http://www.lr.org/contact_us/office_directory/index.aspx

http://www.classnk.or.jp/hp/en/directory/dir_top.aspx

http://www.prs.pl/dir21.html

http://www.rina.org/EN/istituzionale/dovesiamo.aspx

http://www.rs-class.org/en/structure/contacts.php


The classification industry

► 50 classification societies in the world

► The 13 biggest classification societies are members of IACS (International Association of Classification Societies)

American Bureau of Shipping (ABS) USA 8.935 147 M gt

Bureau Veritas (BV) Fr 8.519 75 M gt

China Classification Society (CCS) China 2.412 40 M gt

Det Norske Veritas (DNV) Nor 5.428 133 M gt

Germanischer Lloyd (GL) Ger 6.774 93 M gt

Korean Register (KR) Kor 2.342 39 M gt

Lloyd’s Register (LR) UK 6.185 154 M gt

ClassNK (NKK) Jap 6.103 173 M gt

Registro Italiano Navale (RINA) It 2.303 26 M gt

Russian Register (RS) Ru 4.373 15 M gt

Indian Register of Shipping (IRS) India

Croatian Register of Shipping (CRS) Croatia

Polish Register of Shipping (PRS) Poland

TOTAL 53.374 900 M gt

Statistique IACS January 2011


INTERNATIONAL ASSOCIATION OF CLASSIFICATION

SOCIETIES (IACS)

► Importance

90% of world fleet in tonnage (900m grt)

50% of world fleet in number of ships (53,000)

6.000 marine surveyors

600.000 ship surveys per year

► 3 objectives

To promote the highest standards in ship safety and the prevention of marine pollution

Consultation and co-operation with IMO

Close co-operation with the world’s maritime industries and international organisations

► Structure

Council and Chairman

General Policy Group (GPG)

30 Working Groups

Permanent Secretariat

► Organisation

Conditions of admission to IACS

Quality Assurance System Certification (QSCS)

Transfer of class agreement (TOCA)

Publication of class withdraw on internet

Co-operation with PSC

► Participation to the regulatory process

200 Unified Rules and now Common Structural Rules for bulkers and tankers (scantling)

Contribution to IMO work : a permanent representative + active participation to all important meetings

R&D and training


Control & monitoring of class

IACS Quality System Certification Scheme (QSCS)

► Covers all classification and certification services

► Quality of CS work assessed by reference to the requirements of a certification programme (IMO + ISO standards)

► Operate under the direction of a IACS quality secretary

► Audits carried out by Accredited Certification Bodies (ACBs)


Monitoring of class by States


► Guidelines for authorisation of organisations acting on behalf of the administrations (A.739)

► Minimum standard (Appendix 1)

- to check technical, management & technical resources of Recognised Organisation (RO)

- to provide instructions for substandard ships

- to establish a system to check the adequacy of the work carried out by RO

► To sign a formal written agreement with RO (elements to be included are defined in Appendix 2)

► Specification of functions of RO (A.789)

IMO RESOLUTIONS

A.739 (1993) & A. 789 (1995)

included in SOLAS XI/1

Rules for Flag Administrations

Control by Flag States


Control of class in Europe

► Directive 2009/15/EC of 23 April 2009 “on common rules and standards for ship inspection and survey organizations and for the relevant activities of maritime administrations”

► Article 3: Member State (MS)

can authorize only RO’s

► Article 5: ‘working relationship’

Liability provisions

Audit by MS

Reporting

Suspension and withdrawal of

authorisation

► Article 9: MS shall monitor RO

(biennial)


Control of class in Europe

Regulation (EC) No 391/2009 “on common rules and standards for ship inspection and survey organizations”

► MS may only authorize ROs

► RO has to comply with Criteria of Annex

► ROs have to set up an entity

► EU Commission can:

impose fines and penalty payments

withdraw recognition in specified cases

► EU Commission shall assess the ROs every two years by visits to

offices, inspection of ships (carried out by EMSA)

► ROs shall:

cooperate in PSC

provide fleet data

carry out transfer of class acc. to specific requirements


Control of class by EMSA

► Provisions of TOCA compulsory at Community level for all class societies, whether members of IACS or not

► RO required to define targets and methods to measure their own safety performance

► Use of exclusive surveyors for statutory tasks

► Inspection of the RO every 2 years by EMSA to verify compliance with the Directive

► Monitoring of the RO by the Member State within the scope of granted authorisation

► Need to assess the good safety performance of class as a condition to grant the recognition

► Withdrawal of the recognition if the safety performance of the RO is no longer satisfactory

► Possibility for the Commission to suspend the recognition of a RO


Class more and more controlled by authorities

► IACS audits

Annual audit of the head office + 3 survey centres + 1 controlling office

Vertical contract audits (on board of ships or at yard)

- Number of VCA fixed by IACS with a minimum of 5

- IACS decision to increase 30% number of VCA (BV : 11 per year)

► Flag Administrations

Art.16 of the Directive 2001/105/EC

- Each Member State must satisfy itself that the RO … effectively carry out the functions to the satisfaction of its competent administration

- Each Member State shill carry out this task on a biennial basis…

If art.16 is implemented by carrying out audits of RO, that means for each RO 25 audits every 2 years (one audit every month)

► European Maritime Safety Agency (EMSA)

One assessment every 2 years

Assessment cover both head office, and selected regional office + visit to specific ships

A standard assessment requires a team of 3 assessors who spend up to 5 days in a HO and up to 2 days in a regional office

3. Conclusion: which future for classification societies ?


4 main challenges for classification societies

ROLE IN THE

REGULATORY

SAFETY SYSTEM

IMAGE &

REPUTATION COOPERATION &

MERGERS

LIABILITY REGIME

CLASS

CHALLENGES


Is there a future for class ?

What class is doing for safety

1. Class plays a key role in contributing to the safety and reliability of ships

2. Class is a technical reservoir in the design, construction & operation of ships

3. Class maintains R&D resources to develop better technical rules

4. Class provide technical support to the industry, the Flag States and the IMO

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