8 minute read

Marine surveying

Cyber and COVID-19, have now been added to the other Five Cs of seaworthiness: Condition; Certification; Compliance; Crew; and, Conduct.

Marine Surveying and Claims: The Seven Cs

Jim Clark (left) and David Cox (below) of Matthews Daniel, the loss a djusting, marine warranty and risk services company, point outthat the five Cs of seaworthiness has now become the Seven Cs with the addition of cyber and COVID-19. They warn, however, that the core five should not be overlooked because of the seemingly all-consuming nature of cyber and COVID-19.

The ‘Seven Seas’ is an ancient phrase which has come to mean all of the world’s oceans. It existed in many cultures before the extent of the oceans were known, and indeed the reference to seven is likely not literal. Seven Seas is alliterative, and conveys a sense of far-flung travel, a degree of romance, and once one has ‘sailed the Seven Seas’ an air of experience and expertise.

Many of our surveyors have indeed sailed the Seven Seas. But in their day-to-day work they have traditionally had to think more of Five Cs of seaworthiness as a rule of thumb: Condition; Certification; Compliance; Crew; Conduct. Now, with cyber and COVID-19, Seven Cs are again on their minds.

The basic premise of seaworthiness, that a marine asset is reasonably fit to encounter the ordinary perils of the sea for the intended voyage, is applicable to all aspects of our surveying work, whether it be risk assessment or casualty response. The Five Cs is a mantra that works across this surveying spectrum.

Whilst COVID-19 and cyber are rightly at the forefront of the maritime industry’s mind at present, it is important that we do not lose sight of the core Five Cs. Indeed, the COVID

19 pandemic has shone a light on the importance, and relacertification became a focus, particularly after the tive invisibility, of the crew; the million-plus seafarers many introduction of safe systems of work and the ISM Code in of whom are effectively being held hostage by COVID-19 1998. The conduct of the vessel, that is safe operation and related restrictions. passage planning, has recently been in the news, with the

Meanwhile cyber risks have led to various industry Court of Appeal upholding the decision of the Admiralty responses, with the IMO 2021 cyber resolution to name but Judge in the case of the CMA CGM LIBRA. one, requiring further certification and compliance. If we are However, it is gaining an understanding of the crew, and to focus on these two recent additions to the Five Cs we will the softer elements, that build up to generate an underonly ever be telling part of the story. Instead we must standing of the culture, often the primary driver behind consider them in the context of the original five. safety at sea and ultimately seaworthiness, which renders a surveyor much more valuable than any internet search. SLOW PERCEPTION At one extreme a survey is to determine ‘yes’ or ‘no’ to Within the insurance market there is perhaps a perception a set list of questions. At the other extreme it is to derive that the shipping industry has been a ‘sense’ of the whole situation; slow, relative to other industries, in information which may later become addressing exposure to cyber-related important but which, at the time, was crime. This may partly be because of a ‘‘The weakest part of any simply of passing interest. At this end lack of high-profile cyber incidents that of the survey spectrum, experience have caused physical damage to date. security regime is the human and expertise are key, and the survey

It is, however, more likely that the or will be the holder of significantly numerous pressing matters that the element. It therefore takes no leap of more information about the surveyed shipping industry has had to navigate vessel or unit than could ever be regisin recent years – from freight rates, oil faith to believe that a large percentage tered on paper. prices and mis-declared dangerous There is a repository for every cargoes to ballast water conventions of all cyber incidents are, whether survey that has been conducted, for all and Sulphur Cap Regulations, and now the experience they have gained with the COVID-19 pandemic providing accidentally or all five senses, sight, hearing, smell, another more ‘visible’ and immediate touch, and even taste, employed when challenge – have led to on-board cyber deliberately, caused by people, by gaining an understanding and a sense risks being relegated to the bottom of of a vessel. Five senses used to analyse the potential list of exposures for some crew. Certification and the technical a vessel’s Five Cs of seaworthiness. stakeholders. With ease of travel and commu

The weakest part of any security monitoring of a breach will not nication making the world feel ever regime is the human element. It theresmaller, the first half of 2020 has fore takes no leap of faith to believe prevent a ship-based cyber incident.’’ seen a rapid reversal, with the distant that a large percentage of all cyber ports of the Seven Seas suddenly incidents are, whether accidentally or feeling much further away. As the deliberately, caused by people, by crew. cloud of COVID-19 looks to finally Certification and the technical moniclear towards the end of 2020 and toring of a breach will not prevent a ship-based cyber inciinto 2021, and with the world slowly reopening, it will be dent. Compliance with the ship’s cyber management plan, important to remind ourselves that the effect on vessels’ and proper conduct or safe operation, will be key. crews will potentially have a much longer tail.

The attention on crews resulting from the COVID-19 The importance of understanding the crew, the people pandemic has gone beyond looking at safe operational manwho essentially execute the conduct of the vessel, will be ning, certification, experience, training and induction, and has more relevant than ever. This will be a challenge for an highlighted the importance of fitness for duty and wellbeing. industry as it seeks to respond to casualties and implement The maintenance of a healthy state of mind and ability to cope loss prevention strategies once this current pandemic is over. with the challenges posed by the need to remain free from the It will be vital to ensure that the basics of seaworthieffects of long-term fatigue when assignments are extended ness, these Five Cs, and crew in particular, remain front way beyond original expectations is a significant challenge for and centre. When the future of travel may seem probindividuals and the industry alike. lematic or politically incorrect, we should not forget that often the only way to get that picture of the crew, and SOFTER ELEMENTS ultimately the conduct of a vessel, is to have a surveyor Surveying and seaworthiness have traditionally focused on draw on many years of experience and judgement to build condition, with certification supporting and verifying that a picture and a story that a remote or desktop survey can condition at a point in time. Compliance with that never provide.

Virtual Event in 2020!

@Dublin_Claims

Cannon Events are delighted to carry on the 15 year legacy of the annual marine claims conference in Dublin.

Tuesday 8th September Wednesday 9th September Thursday 10th September 14.00 14.00 14.00

Opening Keynote Address: One Step Panel Discussion: Dispute Avoidance Presentation: Aggregation: What are the Scenarios Back, Two Steps Forward – Marine Moderator: Jonathan Evans, Partner, with High-Value Vessels Laying Up in One Location? Insurance 2020 Kennedys Presenter: Ray Luukas, Chief Technical Officer, Presenter: Jenna Hales, Marine & Speakers: Michiel Starsmans, Legal Director, Marine Engineer, Brookes Bell Energy Claims Manager, Hiscox Splietoff Group, Chris Beesley, Executive 14:25 14:30 Chairman, C Solutions Consultants (S) Pte Ltd Zoom Chat: Is the Marine Insurance Sector Panel Discussion: How Might Covid-19 Legal and Claims Consultants Adequately Equipped to Deal with Claims and Writing Affect our Approach to Handling Claims? 14:45 New Business When Restrictions are in Place? Speakers: David Cox, Chief Executive Discussion: Salvage During Restrictions 14:50 Officer, MatthewsDaniel, Jeremy (12-24 Month Review) Presentations: Offloading Oil: Do Damages to Ships Maynard, Vice President – Global Marine, Speakers: Wilco Alberda, Commercial & Claims During STS Transfer Operations Constitute Marsh JLT Specialty, Malcolm Chartwell, Manager, Smit Salvage, Capt. Saumitr Sen, ‘Collision’ Claims? Director and Master Mariner Attorney, Associate Director, Hull Claims Management Presenter: Sora Jeon, Partner, Tatham Macinnes South Africa, Norton Rose Fulbright 15:15 Networking Session 15:45 Panel Discussion: Over-Valuation: Service, WK Webster, Alistair Johnston, Partner, Campbell Johnston Clark, Daniel Dettor, General Manager (Europe), Resolve Marine Group 15:30 Networking Session 15:20 Networking Session 15:40 Presentations: Liabilities Arising from Covid-19 Presenters: Simon Jackson, Partner, Clyde & Co, Ivan Pros, Cons and Potential Pitfalls from 16:00 Rodriguez, Partner, Phelps Dunbar LLC the Perspective of the Hull Underwriter, the Broker and the Lawyer Speakers: Peter Mellett, Chief Executive Officer, Bankserve Insurance Services Joe O’Keefe, Partner, Stephenson Harwood Discussion: How Might Geopolitics Affect Claims? Speakers: Paul Cunningham, Marine & Energy Claims Manager, Talbot, Patrick Foss, Partner, Kennedys 16:30 16:10 Panel Discussion: The Future of Claims Speakers: Amy Dallaway, Senior Marine Claims Adjuster, MS Amlin, Deji Sasegbon, Associate Director, Marine Liabilities & Cargo, Charles Taylor Adjusting, Kingsly Kwalar Kongnyuh, Chief Executive Officer, Optimiz, Francesco 16:30 Discussion: Training in a Virtual Environment Zolezzi, Claims Manager, Cambiaso Risso Group Keynote Address: Container Shipping Presenter: Greg Knowler, Senior Journalist Maritime & Trade, IHS Markit Speakers: Stephen Harris, Senior Vice President, Marsh JLT Specialty, Annie Stow, Professional Development Director, Standard Club 16:55 Closing Remarks Speaker: Daniel Creasey, Managing Director, Cannon 17:00 17:00 Publishing ‘Drinks’ and Networking – End of Day ‘Drinks’ and Networking – End of Day Two One

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