External Audit News

On January 15, 2021, the U.S. Coast Guard issued an Advanced Notice of Proposed Rulemaking (ANPRM) for Safety Management System (SMS) requirements in the domestic passenger vessel industry (Docket No. USCG-2020-0123). This requirement will have the largest implications on the domestic passenger vessel industry since the revisions of 46 CFR Subchapter T & K in the mid-90s. However, the question remains, is it necessary?Over the last three decades, the effectiveness and need for…

Norwegian shipping company Klaveness Combination Carriers (KCC) said it has secured a $60 million sustainability-linked term loan and revolving credit facility for the financing of the seventh and eighth CLEANBU vessels with delivery in 2021, reportedly a first within the maritime industry. Nordea is acting as coordinator and bookrunner and Credit Agricole CIB as sustainability agent.The credit margin will be adjusted, up or down, based on KCC’s sustainability performance, as…

The world's principal shipping organisation, representing around 80% of the world’s merchant tonnage, International Chamber of Shipping (ICS)  remains confident that shipping will improve its carbon efficiency by at least 40% by 2030 compared to 2008, in line with the UN International Maritime Organization (IMO) targets to reduce greenhouse gas (GHG) emissions. This follows important decisions made by the IMO Marine Environment Protection Committee (MEPC 74) which met in London this week, said a press release from the world’s national shipowner association.ICS Secretary General, Guy Platten said: “We welcome the adoption of important new IMO regulations to strengthen and bring forward the application of the Energy Efficiency Design Index for several different types of new build vessel…

The Federal Bureau of Investigation is not taking appropriate steps to review and assess potential maritime terrorism risks facing U.S. sea ports, the Justice Department's internal watchdog has found.The audit, released on Thursday by Inspector General Michael Horowitz, found that while top FBI officials believe the country faces a low maritime terrorism threat, that view is actually based on "incomplete and potentially inaccurate information."Moreover, the audit found that the FBI had not conducted its own formal assessment of the matter.In a letter to Horowitz dated Aug.

Countdown to Subchapter M: Last-minute tips for choosing the USCG or TPO/TSMS option ...Subchapter M will finally be implemented in the tugboat and towing industry in only a few short months. It has taken over ten years to arrive, but the build-up and in some cases, hysteria, can only be compared to the Y2K scare at the end of 1999. During that period, the world said Y2K would cause computer crashes, commerce to end and daily life to come to a crashing halt.Now, fast forward almost twenty years and enter Subchapter M.

The International Maritime Organization (IMO) January 2021 deadline for ship owners and managers to incorporate cyber risk management into existing Safety Management Systems is closer than many realize, especially given the complex profile that the risk presents and the need for a well-detailed procedure to help protect marine assets and businesses. The failure to properly address cyber risks is much greater than the simple fact that a vessel could be detained by Port State Authorities if it were found to be not in compliance.

To help maritime operators ensure that crew are training and performing at their peak, KVH Industries, Inc. introduced Videotel Performance Manager. The scope of the Videotel Performance Manager combines the range of training content from Videotel with the power of web-based data analytics – all from KVH. By providing maritime managers with actionable insights about their fleets’ training activities, Videotel Performance Manager is designed to help increase operational efficiency, safety, and crew performance. The cloud-based software platform ensures that a crew’s latest training records are accessible from any web-enabled device, and interactive…

The chief executive of struggling Korean shipbuilder Daewoo was questioned by state prosecutors on Tuesday over allegations that the yard tried to cover a major deficit in 2015 by underreporting losses. According to a report in Yonhap, Jung Sung-leep, 66, appeared before the Seoul Central District Prosecutors' Office as a suspect on charges of violating the Act on External Audit of Stock Companies. Jung Sung-leep, DSME’s President and CEO since May 2015, has been reportedly charged with underreporting some KRW 120 billion (USD 101 million) in business losses in 2015. Ko Jae-ho, who headed the company from 2012 to 2015, is awaiting a court's ruling Wednesday over allegations he overreported some 5.7 trillion won in net assets between 2012 and 2014.

Last summer, the United States Coast Guard (USCG) announced its intent to accept the American Waterway Operators (AWO) Responsible Carrier Program (RCP) as an acceptable Towing Safety Management System (TSMS) under pending Subchapter M regulations. The acceptance did not come without some major changes to the RCP, changes that were needed to ensure the RCP would meet USCG requirements and become a viable option for operators once new Subchapter M regulations take effect. When that happens is anyone’s guess.

Maritime digital data services company ChartCo acquired Regs4ships, the supplier of digital regulatory information, consultancy and training. ChartCo, part of the Kelvin Hughes Group, created a range of digital services in 1998 in anticipation of the move from paper to digital charts and publications. Subscriber numbers have since exceeded all expectations and continue to grow. ChartCo now offers a range of services aimed at assisting the Navigator not only to maintain the chart outfit but both plan and execute his voyage. The key PassageManager suite of software is built into many operators’ safety management systems. It provides consistent and compliant procedures and facilitates external audit.

Following a three-year record of improved results from Port State Control (PSC) inspections, the London-headquartered St Kitts & Nevis International Ship Registry (SKANReg) has moved up to Grey List ranking on the Paris MoU performance lists covering Europe and the North Atlantic. With 24 detentions from 307 inspections in the period 2011-2013, the registry now sits midway in a spectrum ranging from White List flags – those with a consistently low detention record – to poorly performing Black List flags.

Conqueror Freight Network said it has reached a milestone in its global coverage with the addition of its 200th city in its 100th country. “This is a significant moment for the network. The network’s third annual meeting is being held in Kuala Lumpur this May, and the company said expectations are high. “With this increase in members, we are expecting our highest ever turnout for a Conqueror meeting. All our members understand the importance of meeting face to face and are committed to attending where possible, this is quite a network owner’s dream,” Torres emphasized. Currently the network has coverage in 209 cities in 102 countries and employs around 16,500 people.

How well prepared is your company for a natural disaster? How quickly could you get your operations up and running after the storm or other event hits? How about your vendors and suppliers? Emergency contingency plans (aside from vessel emergencies where oil has entered the water – that merits its own article and won’t be covered here) can start with a streamlined communications process. For emergencies ashore, how are you set up to handle business if the office is no longer accessible? Having people work from home can be an effective plan, but have you considered how communications will work?

DCT Gdansk said that on March 5, 2012, it became the first container terminal operator in Poland to receive the Authorized Economic Operator (AEO) certification. AEO is an international certificate established in 2008 by the European Commission to secure a smooth international trade flow accepted by Customs worldwide. Companies and institutions involved in the international movement of goods, such as importers, exporters, forwarders, ports, airports, terminal operators, etc. which have earned this certificate benefit from Customs simplifications as a result of being reliable partners.

Surveyors from the Maritime and Coastguard Agency have detained a Cambodian registered ship after they found that the ship was just playing lip-service to the newly introduced requirements for a safety management system. `Sea Runner a 1965 built 1242 gross ton three-hold general cargo vessel was detained in Seaham on August 6. She had been targeted for inspection after having been detained four times previously in Europe in the past year. On boarding surveyors found that the Russian crew could not identify the company responsible for the operation of the ship, identify the designated person ashore responsible for monitoring the safe operation of the ship or produce safety management documentation in their working language.

Marine Safety Office Jacksonville issued a Captain of the Port (COTP) Order today to the owners of the La Cruise casino boat requiring the vessel to leave the port of Jacksonville and all other U.S. waterways within 72 hours or face civil penalties of $32,500 for everyday of non-compliance. The order was given based on the vessel's poor safety record accumulated between July 2001 and August 2004. During that period, the casino boat has had numerous mishaps and casualties; it failed to meet required safety standards for manning, training and procedures and ignored specific COTP orders to move their vessel during two hurricanes. While each of these instances alone did not represent a direct or significant threat to the safety of the vessel or those on board…

Marine Safety Office Jacksonville issued a Captain of the Port (COTP) Order the owners of the La Cruise casino boat requiring the vessel to leave the port of Jacksonville and all other U.S. waterways within 72 hours or face civil penalties of $32,500 for everyday of non-compliance. The order was given based on the vessel's poor safety record accumulated between July 2001 and August 2004. During that period, the casino boat has had numerous mishaps and casualties; it failed to meet required safety standards for manning, training and procedures and ignored specific COTP orders to move their vessel during two hurricanes. While each of these instances alone did not represent a direct or significant threat to the safety of the vessel or those on board…