DNV calls for improved safety performance in shipping

2009-04-23

The global economic crisis is affecting shipping safety performance warns DNV director Bjorn Tore Markussen in Singapore. “More needs to be done on safety training to combat this trend.”

Speaking at the Singapore Maritime Week event, Mr Markussen, who heads DNV Maritime Solutions in Singapore, told the conference audience that over the past six years there has been an increasing incidence of serious navigational accidents in several shipping segments. With more lines switching to “cost-cutting culture,” Mr Markussen is worried about the global economic crisis and the impact it will have on safety performance.

“Our research shows that losses from navigational accidents are continuing to increase in frequency and costs, a trend that is also confirmed by the insurance industry which describes 2008 as a ‘black year,’ says Mr Markussen.

Saving dimes while losing bucks
According to Mr Markussen , collisions, groundings and contact accidents now account for 60 per cent of the most costly accidents. “In today’s adverse market situation, we see that the shipping executive’s agenda is shifting from growth and capability building, to various cost cutting initiatives. This shift will be even more challenging when we now see that more shipping companies struggle to survive the financial crisis,” he said. “We know from research, cost-cutting exercises without proper risk management and consequence analysis towards safe and secure operations might result in companies saving dimes while losing bucks.”

Echoing Mr Markussen’s concerns, Norwegian Hull Club Director Mr Ola Skauge, commented: “Over the years we have noticed a significant raise in claims frequency, which has hit shipowners and insurers hard. Now the financial crisis is battering us, adding even more challenges to the maritime industry. It is in these times that responsible players emerge and investments in safety excellence are proven right. The Norwegian Hull Club supports the proactive efforts made by class to send some warning signals, and we expect determined and long-term shipowners to continue to focus on safety also amidst the financial turmoil. Cost-cutting may be a necessary operational exercise, but cutting corners and losing the focus on safety will surely jeopardise a sustainable shipping industry.”

In an effort to combat the negative trend, DNV continues to push its Crew Resource Management (CRM) training as an effective utilisation of onboard crew becomes ever more critical.

Dr Torkel Soma, principal consultant and head of DNV Maritime Solutions’ Safety Excellence services, says that reliable technology and compliance with manuals do not provide any assurance that errors will not occur.

“Collisions, groundings and contact accidents almost always involve human acts, and a common misunderstanding is that the governing cause behind these behavioural errors is a lack of professional competence.”

Organisational improvement area
In his opinion, more navigational training alone does not keep the officers more awake. “The fact is that it has never been easier to navigate ships safely. But in order to effectively benefit from these navigational aids, the circumstances around the onboard activities must be coordinated through good onboard leadership and teamwork. This is an organizational and not an individual improvement area.”

DNV’s CRM program focuses on practical behaviour oriented training that improves the efficiency and quality of the onboard teamwork, incorporating the key areas of leadership, situational awareness, decision making, co-operation and communication.

Mr Markussen is “fairly sure” we will continue to see a range of severe losses during 2009. “Losses that could have been prevented by a more risk centred and holistic management of the inevitable organizational changes we face times of dynamic recession. The old saying is still valid: If you think safety is expensive – try an accident.”

“At DNV, we recognize that risk management is becoming increasingly important for our customers in the shipping industry, which is why we remain committed to developing our core competencies to identify, assess and advise on how best to manage technical and business risks,” says Tor-Erik Aarlot, DNV’s Area Manager in South East Asia, and concludes; “By providing industries with tools to manage risk, we strive to help our customers maintain a safe and sustainable business and, in the process, take one step further in realising our purpose to safeguard life, property and the environment in South East Asia.”

DNV