TEST PAPER 1

Q.1. Write a short note on any four of the following.

a) SSAS b) INSA c) 3PL/4PL d) ILO e) ITF f) Northern Sea Route
A.1
a) SSAS: The ship security alert system is again not a GMDSS communications system but it may be
associated with GMDSS equipment installed on a ship. Carriage of SSAS is a requirement under the
regulations of chapter XI-2 of SOLAS. The ship security alert system is fitted to a ship for the
purpose of transmitting a security alert to the shore to indicate to a competent authority that the
security of the ship is under threat or has been compromised.
SSAS is a system that contributes to the International Maritime Organization’s (IMO)’s efforts to
strengthen maritime security and suppress acts of terrorism and piracy against shipping. The system is
a joint project between Cospas-Sarsat and the IMO. In the case of attempted piracy or terrorism, the
ship’s SSAS beacon can be activated, and appropriate law-enforcement or military forces can be
dispatched.

b)INSA: The Indian National Steamship Owners' Association, subsequently changed to the Indian
National Ship-owners Association, was founded in 1929. It is the collective forum of the national
shipping industry of India. Presently it has 34 ship owning companies as its members who collectively
own a total fleet of 10.08 million dwt comprising 90% of the Indian fleet.
The aims and objectives as formulated in 1948, and which now govern the functioning of
the Association, are briefly as under:
o To promote the development of national shipping and to secure for it fullest possible
participation in the carriage of cargo, passengers, etc. in the inland, coastal and overseas
trades of India as well as in the cross trades outside India.
o To participate actively in Indian shipbuilding, engine-building, ship repairing, port
facilities, etc. and all allied industries.
o To protect national shipping interests against any encroachment from any outside
sources.
o To take necessary steps to provide proper conditions of service for coasting and shore
personnel of shipping companies and to promote welfare measures for their benefits.
o To co-operate with other national and international organizations and bodies with
objectives similar to those of the Association.
o To secure adequate representation for the Association in all national and international,
private and public organizations connected with shipping.
o To undertake and arrange for arbitration of all disputes in the shipping industry and in
any other allied fields related to shipping.
o To keep a close watch and take suitable action as may be advisable and necessary in
regard to any legislation that is likely to affect the interests of national shipping in general.
o To collect and disseminate information in India and abroad in regard to all aspects of
Indian shipping.
o Generally to do all such acts in order to protect and improve further the interests of Indian
shipping companies, members of the Association and the national shipping industry
deemed necessary.

c) 3PL:
Third-party logistics companies offer logistics services and support some or all aspects of a business’s
shipping operations, managing all aspects of moving goods from manufacturers and distributors to the
end customer. A 3PL is commonly used in outsourced logistics and supply-chain management to
outsource a company’s shipping and fulfilment services, which can include:
Transportation
 Warehousing
 Materials procurement
 Inventory management
 Customs brokerage
 Freight audit
 Payment
 Shipment tracking

4PL: A fourth-party logistics (4PL) organization provides many of the same services as a 3PL, but
there are some important differences. For starters, 4PLs have a much more broadly defined role
compared with a 3PL. According to the Council of Supply Chain Management Professionals
(CSCMP), a 4PL is defined as “often a separate entity established as a joint venture or long-term
contract between a primary client and one or more partners.” In a nutshell, a 4PL is responsible for a
supply chain’s planning, management, and designing, from start to end, rather than standard delivery,
distribution, and transportation functions.

d)ILO: International Labour Organisation was set up in 1919 as a tripartite organisation with
representatives of workers, employers and governments taking part on its work on an equal footing. It
proclaims the right of all human beings to pursue both their material well being and their spiritual
development without any hindrance. It further states that poverty anywhere constitutes a danger to
prosperity everywhere. In 1969 ILO had the distinction of winning the Nobel Peace Prize.

In shipping and ports, ILO is concerned with:

(i) Protection of seafarers, dockworkers and fishermen.
(ii) Updating of minimum standards of maritime labour pertaining to wages, hours of
work and holidays, manning, crew accommodation on board recruitment,
repatriation, training, health, etc.
(iii) Promoting research and publishing work.

e) ITF: The ITF was founded in 1896 in London by European seafarers' and dockers' union leaders
who realized the need to organise internationally against strike breakers. Today the ITF organises
workers in ships, ports, railways, road freight and passenger transport, inland waterways, fisheries,
tourism and civil aviation.

The ITF represents transport workers at world level and promotes their interests through global
campaigning and solidarity. It is dedicated to the advancement of independent and democratic trade
unionism, and to the defence of fundamental human and trade union rights. It is opposed to any form
of totalitarianism, aggression and discrimination. The ITF is one of several Global Federation Unions
allied with the International Trade Union Confederation (ITUC).

f) Northern Sea Route: Due to global warming the ice from Northern and Southern part of the earth
is slowly melting and thereby making it possible to navigate without use of ice breaker from higher
latitudes in Northern hemisphere. It means from Europe to far East Asia and vice versa ships can use
this route known as “Northern sea route”. Earlier they had to use Southern Shipping route through
Suez canal and Mallacca straight route.
A Russian tanker has travelled through the northern sea route in record speed and without
an icebreaker escort for the first time on 24 August 2017, highlighting how climate change is opening
up the high Arctic The $300m Christophe de Margerie carried a cargo of liquefied natural gas (LNG)
from Hammerfest in Norway to Boryeong in South Korea in 19 days, about 30% quicker than the
conventional southern shipping route through the Suez Canal.
Q.2. The problem of Piracy is continuing to be a cause of concern to the International trade,
particularly
for India. Explain with reasons.

A.2

The problem of piracy is a major threat to global trade. Piracy is defined as ‘any form of criminal
violence and robbery at sea’. Individuals who engage in such criminal offenses are known as pirates.
Such pirates usually attack crews, loot vessels, and sometimes injure victims. They also demand a
ransom before freeing their victims.
Over 90 percent of global trade is supported by the shipping industry’. Shipping has transformed the
nature of international trade. Today there are over 50,000 ships ferrying cargo across the globe who
frequently transit two major piracy prone area Gulf of Aden & Straits of Malacca which are also one
of the busiest traffic lanes of the world.

Since more than 90 per cent of India’s trade takes place by sea routes and over 80 per cent of the
country’s hydrocarbon requirements was sea-borne, security of these routes and lanes of
communication is critical. The incidents involving 288 Indian nationals were detected between 2008
and 2011, and 19 such cases involving 155 Indian crew members were detected between 2014 and
2022.
In today's times, the menace of piracy is growing. The Gulf of Aden, which separates Somalia and
Yemen and connects the Arabian Sea to the Red Sea and through the Suez Canal to the Mediterranean
Sea, has seen a major spurt in attacks by pirates operating from Somalia since 2008. This route is used
by about 2000 ships each month for trade between Asia and Europe and East coast of Africa. With the
enhanced naval presence in the Gulf of Aden, pirates shifted their area of operations eastwards and
southwards. This led to a flurry of piracy incidents towards the western coast of India as well.
India does not have a separate domestic legislation on piracy. The provisions of the Indian Penal Code
pertaining to armed robbery and the Admiralty jurisdiction of certain courts have been invoked in the
past to prosecute pirates apprehended by the Indian Navy and the Coast Guard but in the absence of
any specific law relating to the offence of maritime piracy in India, problems are being faced in
ensuring effective prosecution of the pirates.

Given the increasing incidences of piracy, including within India's Exclusive Economic Zone, and the
increasing number of pirates apprehended by the Indian Naval forces, the need is felt for a
comprehensive domestic legislation on piracy, which is an outcome to the commitment made by India
by signing the United Nations Convention on the Law of the Sea (UNCLOS) in the year 1982 and
ratified in the year 1995.

In view of the above, it has been decided to bring about a domestic anti-piracy legislation for the
prosecution of persons for piracy-related crimes and to promote the safety and security of India's
maritime trade including the safety of our vessels and crew members

Accordingly, the Anti-Maritime Piracy Bill, 2019, inter alia, provides for the following.
(a) to make the provisions of the proposed legislation applicable to all parts of the sea adjacent to and
beyond the limits of Exclusive Economic Zone of India;
(b) to make the act of piracy on high seas as an offence punishable with imprisonment for life or with
death;
(c) to provide for punishment for attempt to commit offence of piracy or being an accessory to the
commission of offence;
(d) to provide for presumption of guilt in case certain conditions are satisfied; (e) to make the offence
extraditable;
(f) to enable the Central Government, in consultation with the Chief Justice of the concerned High
Court, to specify certain courts as Designated Courts for speedy trial of offences of piracy under the
proposed legislation.
The Bill introduced in the Lok Sabha on 9 December 2019 seeks to achieve the above objectives and
was passed in Lok Sabha & Rajya Sabha on 19th & 21st Dec 2022 respectively.

Q.3 What are facilities / infrastructure that port needs to offer to its users? Explain in detail.

A.3

Port , its function, feature and facilities:

A Port is a place on a coast containing one or more harbours where ships can wharf and transport
people or cargo to or from land. It is measured as one of the most fundamental aspects of national
transport infrastructure. Port is a ship/shore interface, a gateway for trade. It attracts infrastructure
such as bank, agency & industry.

Port is the areas:

• Where there are the services of berthing or anchoring ships
• Where there are the gears for moving the cargo from ship to shore or shore to ship.
• Where custom and government policies are implemented.
• Where most shipping services are located

Main function and feature of ports:

• Sea and land access
• Infrastructure for ships berthing
• Road and rail link
• Industrial area
• Control of vehicles during entering and leaving port
• Environmental control
• Control of damages of cargo
• Safety and security within the port vicinity
• Immigration, custom, health & medical
• Commercial papers control
• Pilotage, tugging & mooring arrangement
• Use of berths
• Loading, unloading & storage
• Distribution of cargo

Services and facilities for Ships:

• Arrival and departure

• Navigational aids and Vessel Traffic Services
• Approach channel & Berth
• Pilot Services, Tugs and Mooring arrangements

Services and facilities for Cargo:

• Cargo handling on ship and on quay
• Transfer to/from storage
• Storage/warehousing
• Tallying, marking &weighing
• Surveying & protection
• Customs and documentary control
• Receiving and delivery

For Cargo transfer facilities:

• Opening closing of hatches
• Stowing of cargo
• Connection of manifold

Additional facilities @ port:

• Repacking, labelling, sorting, assembling, cleaning and preparing cargo
• Setting up logistic network and packaging unit
• Administrative Control facilities:
• Police, immigration, customs, health, water, provision supply, telephone, repairs, Hospital, waste
control, Fire control & port state control.

Q.4 Role and responsibility of Flag state and Port state control.

A.4:

Role and responsibility of Flag States:

It is the responsibility of flag States to ensure that they establish and maintain measures for
the effective application and enforcement of the IMO instruments to which they are a party. From
the point of view of flag State implementation the most significant IMO instruments are:
(1) the International Convention for Safety of Life at Sea 1974 (SOLAS 74) as amended;
(2) the International Convention for the Prevention of Pollution from Ships, 1973 as
modified by the Protocol of 1978 relating thereto (MARPOL 73/78), as amended;
(3) the International Convention on Load Lines, 1966 (LL 66);
(4) the International Convention on Standards of Training, Certification and Watchkeeping
for Seafarers, 1978 (STCW 78), as amended;
(5) the Convention on the International Regulations for Preventing Collisions at Sea, 1972,
(COLREG 72), as amended; and
(6) the International Convention on Tonnage Measurement of Ships, 1969, (Tonnage 69).
Regard should also be given to the United Nations Convention on the Law of the Sea (UNCLOS).
Legal framework :
A flag State should:
(A) take measures to ensure safety at sea and pollution prevention for ships entitled to fly
its flag with regard to:
1. the construction, equipment and management of ships;
2. the principles and rules with respect to the limits to which ships may be loaded;
3. the prevention, reduction and control pollution of the marine environment and the
minimization of the impact of accidental discharges of pollutants;
4. the manning of ships and the training of crews; and
5. the safety of navigation (including taking part in mandatory reporting and routing
systems), maintenance of communications and prevention of collisions;
(B) promulgate laws which permit effective jurisdiction and control in
administrative, technical and social matters over ships flying its flag and, in particular,
elating to the inspection of ships, safety and pollution prevention laws applying to such
ships and the making of associated regulations;
(C) promulgate laws providing the legal basis for the establishment of a registry and
maintain a register of ships flying its flag.
Enforcement :
(A) A flag State should:
1. provide for the enforcement of its national laws, including the associated investigative and penalty
processes;
2. take appropriate action against ships flying its flag that fail to comply with applicable requirements;
3.ensure the availability of sufficient personnel with maritime and technical expertise to carry out its
flag State responsibilities, including:
(a) the development and enforcement of necessary national laws;
(b) the establishment and maintenance of minimum safe manning levels on board
ships flying its flag and provision of effective certification of seafarers;
(c) inspection of ships flying its flag to ensure compliance with the requirements of
international instruments to which the flag State is a Party;
(d) reporting of casualties and incidents as required by the respective instruments;
and
(e) investigation of circumstances following any detention of ships flying its flag.

Role and responsibility of Port State Control:

The fundamental aim of port state control is to eliminate sub-standard ships in order to ensure IMO’s
twin objectives of ‘Safer Ships and Cleaner Oceans’. The main theme is to take corrective action in
case of identifies sub-standard ships before they are allowed to sail further. When ships do not call at
home ports for considerable period of time, it is possible that during a certain period of time, ships’
certificates may not have been renewed or maintenance in general has suffered due to various reasons.
Therefore, it is imperative that ships must be inspected at various ports to ensure compliance with rule
requirements as regards safety, manning, maintenance, etc. ‘This control is termed as Port State
Control’.

PSC have to effectively enforce relevant convention with regard to foreign ships visiting their port for
identifying deficiencies, if any, in such ships which may render ships substandard and towards
ensuring that remedial measures are taken.

Port State Control (PSC) is an inspection regime for countries to inspect foreign- registered
ships in port other than those of the flag state and take action against ships that are not in
compliance. Such inspectors are called PSC officers, and are required to investigate compliance with
the requirements of international conventions, such as SOLAS, MARPOL, STCW, and the MLC.
Inspections can involve checking that the vessel is manned and operated in compliance with
applicable international law, and verifying the competency of the ship's master and officers, and the
ship's condition and equipment.
The conditions of and on a ship and its equipment and the certification of the crew and the flag State’s
minimum manning standard should be compatible with the aims of the provisions of the conventions.
Otherwise, the ship may have to be subjected to such restrictions as are necessary to obtain a
comparable level of safety and protection of the marine environment.

In accordance with the provisions of the applicable conventions, Parties may conduct
inspections of foreign ships in their ports with Port State Control Officers.
Such inspections may be based on the basis of :
1) the initiative of the Party;
2) the request of, or on the basis of, information regarding a ship provided by another
Party; or
3) information regarding a ship provided by a member of the crew, a professional body, an
association, a trade union or any other individual with an interest in the safety of the
ship, its crew and passengers, or the protection of the marine environment.
Q.6. Write a note on Containerization in India, progress made and difficulties faced

A.6

The concept of ocean going containers was introduced in India for the first time in 1968 in a seminar
held jointly by the Indian National Shipowners’ Association (INSA), Directorate General of Shipping,
The Shipping Corporation of India Ltd. (SCI) and the All India Shippers Council (AISC) at Mumbai.
The Indian shipowners and the trade began to consider the implications of implementing the concept.
A Working Committee report on the subject was circulated. In early 1970s SCI acquired the first
semi-container ship with three holds designed to carry containers along with two-holds for general
cargo. Other shipping companies like Scindia Steam Navigation Co. Ltd. and India Steamship Co.
Ltd. followed on the steps of SCI. Indian Steamship Company went ahead to acquire a small cellular
and also RORO type container ship.

In 1973, the American President Lines began scheduling their cellular feeder container ships to
Mumbai and brought the necessary handling equipment with them. Thereafter lines of European and
other countries also started scheduling their container vessels to Indian ports.

However, India started seriously to adopt containerization only in 1978. Major ports like Mumbai,
Cochin, Chennai, Haldia/Calcutta commenced to equip themselves for handling container ships and
containers in an appropriate way. Shippers and consignees also responded to the opportunities and
benefits in containerization. The buyers of India goods abroad stipulated in their letters of credit that
the goods should be containerized. Hence, despite the need for heavy investments and numerous
problems in smooth flow of goods, India was forced into containerization to stay abreast with the
dominant trend in the world economy.

India had declared 12 Major Ports and 187 Non-Major ports spread across a coastline of around
7,500 km. The segregation of Major and Non-Major Ports is just a nomenclature used within India
which shows if the ports are under the control of the Central Government (Major) or under the
jurisdiction of a state government (Non-Major). Currently, there are only 12 Major and 6 Non-Major
ports which handle container traffic in India. Three on the west coast (Mundra, Pipavav and Hazira)
and three on the east coast (Karaikal-only limited handling, Kattupalli and Krishnapatnam).

India’s container port traffic grew by 13% in 2017, following 11% growth in 2016. All Indian ports
recorded positive growth during the year, barring one or two ports. Mundra’s traffic grew by more
than 20%, and JNPT’s traffic inched up by 4.8% in 2017. On the east coast, Chennai increased its port
throughput by 1.6%. Furthermore, Krishnapatnam - a new port - has been growing at a fast pace.

Q.7. ISM code and its effect on shipping for enhance safety.

A.7

The International Safety Management (ISM) Code, which was adopted by the International
Maritime Organisation (IMO) Assembly in Resolution A 741(18) on 4th November 1993, aims to
provide an International management code for the safe operation of ships and for pollution
prevention. The objectives of the code are as follows:
 To ensure safety at sea
 Prevention of human injury or loss of life
 Avoidance of damage to the environment, in particular to the marine environment
and to property.

To achieve the objective of the code, every company has to develop, implement and
maintain a Safety Management System (SMS) which includes the following functional requirements:
 A safety and environmental protection policy
 Instructions and procedures to ensure safe operation of ships and protection of
environment in compliance with relevant international and flag state legislation.
 Defined level of authority and lines of communication between and amongst shore
and Shipboard personnel.
 Procedure for reporting accidents and no-conformities with the provisions of the
code.
 Procedure to prepare for and respond to emergency situations.
 Procedures for internal audits and management reviews.

The ISM Code is a management system code designed to cover the organisational
arrangements adopted by a shipping company to achieve the objectives of the code. The code
establishes an international standard for the safe management and operation of ships, by setting rules
for the organisation of company management in relation to safety and pollution prevention for the
implementation of the Safety Management System.

Q.8 Explain Ships registry, and Open registry (Flag of Convenience) its (FOC’s) advantages
and disadvantages. Why ITF targets these ship (FOC) ?

A.8

Ship Registry:
Ship registry refers to the registration of the shipowner, the name of the ship, the technical data and
performance parameter of the ship, and other contents carried out by the national ship registration
authority according to the relevant international conventions and national laws. Ship registry is not
only a necessary condition for a ship to acquire nationality and navigation right, but also an
administrative means for the flag State to effectively manage ships engaged in related shipping trade.
It is also a legal means to confirm the ownership, mortgage and lease of a ship.

Closed Registry:
Closed registry is the earliest concept of the ship registration mode, which requires that ships must be
owned by its own nationals or enterprises conforming to national legal qualifications, but the strict
degree of requirements in different countries vary. Some countries with closed registry systems only
allow their national citizens or enterprises to be the owners of ships flying their flags, while some
countries with more open closed registry systems allow non-citizens but permanent residents or others
of similar status to be the registered owners of ships. In other countries with more strict closed
registry systems, it is stipulated that all persons, including the captain, the management personnel, the
shareholders and the actual owners of the company, must be nationals of the flag State, or nationals of
the flag State hold a majority of the shares of the company. Some flag States may even require that
the ship must be built in a domestic shipyard and be classed by a domestic or approved classification
society. Therefore, the typical feature of closed registry is that the flag State only allows its own
nationals to register ships, but the definition of nationals varies from country to country. For the sake
of economy and safety, many countries still adopt the closed registry system, which represents the
traditional development pattern of the ship registration system.

Open registry (Flag of Convenience):

“Open registry” is a system in which there is no “genuine link” between the flag State and the
ownership or crew of a ship, but foreign shipowners are encouraged to fly their flags for less costs.
International Transport Federation (ITF), an international trade union federation of transport workers’
unions around the world, also defined “open registry” as a “flag of convenience”, which referred “if
the beneficial ownership and control of the ship is not in the flag State but in another country or
region, the ship is under the FOC; where the identity of the beneficial owner is unknown, any ship
shall be deemed to be under the FOC if there is no ‘genuine link’ between the flag State and the
natural person or corporate entity who has effective control over its operation.

Advantages of FOC:
1. Easy procedure for registration.
2. Low taxation.
3. Flexibility to operate with multi-national crew.
4. Procedures for amendment/change in ownership simplified.
5. Convenient route for poor countries to raise foreign currency.
6. No strong trade unions to put obstacles in way of shipowers.
7. Greater operational freedom due to fewer government imposed restrictions.
8. Reduction in operating costs, specially manning.
9. Owing to less operating costs gives owners a trading advantage over non- FOC
owners.

Reasons for ITF targeting these ship (FOC):

1. Some FOC have low safety standards & no effective machinery to enforce
international safety regulations.
2. Prone to frequent inspections at various ports by PSC.
3. May encounter difficulties in recovering claims.
4. The casualty record of FOC countries is higher than world average.
5. Mono-lingual cheap crews of a single foreign nationality may not be able to
communicate effectively with officers during moments of grave crisis.
6. Investigations carried out by FOC countries into casualties are out sourced are
not thorough and rigorous as they should be.
7. Loss of support from their own governments for subsidies and finance at cheaper
rates of interest.

Vessels registered under FOC cannot trade in certain parts of the world for fear of industrial action by
ITF.
 TEST PAPER 3
Q.1. Write short notes on any four of the following:
a) Shipping Master
b) World Health Organization (WHO)
c) AISC
d) INSA
d) OSV
f) Sagarmala

A.1

a) Shipping Master: Shipping offices have been established at the port of Mumbai and
“Calcutta under Section (11) of the M.S. Act, 1958 in the charge of Shipping Masters who
discharge their duties and functions under the general control of D.G. Shipping as per the
provision of Section 11(2). Their duties, functions and powers are derived from the
provisions of Part VII of the Act, namely engagement and discharge of seamen, treatment
of distressed seamen, enquiries into disputes between seamen and masters/ship owners
relating to wages, ill-treatment, medical examination, etc.

b) World Health Organization (WHO): The WHO concerns itself with various maritime matters
including the health of seafarers, pollution control of various sorts and quality of coastal waters. It
makes regulations to control passage of diseases from one country to another. Certain inoculations
and/or vaccinations are mandatory, viz., Yellow Fever, every 10 years for persons travelling from
East or west Africa. Without this, countries like the United States will not accept them.
The International Sanitary Regulation (ISR) stamps are required for all inoculations and
vaccinations. This stamp is given by the doctor giving the injection. (Yellow fever is not under ISR as
it is not prevalent everywhere).
WHO also regulates cleanliness and health on board a ship. The first person to board a ship
is the doctor called the Port Health Officer (PHO) who issues a Bill of Health on the basis of which a
ship is allowed to enter a port.

c) AISC: All India Shippers' Council is a body of exporters which maintains a close liaison with the
Ministry of Surface Transport and the Liner Operators at the various Indian ports.

AISC represent shippers' interests to ensure adequate and regular frequency of sailings
from various ports. It advocates reasonableness of frequency of sailings, changes in the rates and other
fees like terminal handling charges for containers, demurrage rates, stevedoring expenses, etc. The
Council has its representatives on boards of various Port Trusts to look after the interest of shippers.

The President of the Indian National Committee of the International Chamber of Commerce
is the Chairman of the Council.

The members of the Council are nominated by the following organizations:

(a) One representative by the Federation of Indian Chambers of Commerce and
Industry, New Delhi.
(b) One representative by the Associated Chamber of Commerce & Industry, Calcutta.
(c) Two representatives by the Western India Shippers' Association, Mumbai.
(d) Two representatives by the Southern India Shippers' Association.
(e) Two representatives by the Federation of Indian Exporters Organisation, New
Delhi.
The above representatives elect from among themselves the Vice-President of the Council.
The council may co-opt not more than 5 members to represent the Directorate General of
Shipping, various Associations, Commodity Boards dealing with the commodities of which India is a
bulk exporter, etc.
Assistance to the Council is now being provided by the Chamber of Commerce. Moreover
the Shippers' Council has been recognized by the Government and Shipping Conferences have started
dealing with them directly.

d) INSA: The Indian National Steamship Owners' Association, subsequently changed to the Indian
National Ship-owners Association, was founded in 1929. It is the collective forum of the national
shipping industry of India. Presently it has 34 ship owning companies as its members who collectively
own a total fleet of 10.08 million dwt comprising 90% of the Indian fleet.
The aims and objectives as formulated in 1948, and which now govern the functioning of
the Association, are briefly as under:
o To promote the development of national shipping and to secure for it fullest possible
participation in the carriage of cargo, passengers, etc. in the inland, coastal and overseas
trades of India as well as in the cross trades outside India.
o To participate actively in Indian shipbuilding, engine-building, ship repairing, port
facilities, etc. and all allied industries.
o To protect national shipping interests against any encroachment from any outside
sources.
o To take necessary steps to provide proper conditions of service for coasting and shore
personnel of shipping companies and to promote welfare measures for their benefits.
o To co-operate with other national and international organizations and bodies with
objectives similar to those of the Association.
o To secure adequate representation for the Association in all national and international,
private and public organizations connected with shipping.
o To undertake and arrange for arbitration of all disputes in the shipping industry and in
any other allied fields related to shipping.
o To keep a close watch and take suitable action as may be advisable and necessary in
regard to any legislation that is likely to affect the interests of national shipping in general.
o To collect and disseminate information in India and abroad in regard to all aspects of
Indian shipping.
o Generally to do all such acts in order to protect and improve further the interests of Indian
shipping companies, members of the Association and the national shipping industry
deemed necessary.

e) OSV: Offshore Support Vessels, also known as Offshore Supply Vessels, are specialty ships
designed for operating on the ocean, serving multiple purposes. They can serve as platform support,
anchor handling, construction, maintenance, and more. OSVs provide support offshore - anything
from bringing equipment to rigs to repairing offshore wind turbines. They are integral to getting
supplies and materials where they need to go, as well as building and repairing offshore equipment.
Their versatility means they can be built for just about any type of project.
Some of the main types of OSVs are:
 Seismic survey ships
 Platform Supply Vessels, or PSVs
 Anchor Handling Tug Supply Vessels (AHTS)
 Construction Support Vessels
 Diving Support Vessels
 Inspection, Maintenance, and Repair Vessels
 ROV Support Vessels
f) Sagarmala: Sagarmala Programme is an initiative of Government of India to enhance the
performance of logistics sector in India. The programme envisages unlocking the potential of
waterways and coastline, to minimize infrastructural investments required to meet these targets. It
entails ₹8.5 trillion (US$120 billion or €100 billion) investment for setting up of new mega ports,
modernization of India's existing ports, development of 14 Coastal Employment Zones (CEZs) and
Coastal Employment Units, enhancement of port connectivity via road, rail, multi-modal logistics
parks, pipelines & waterways and promote coastal community development, resulting in boosting
merchandise exports by US$110 billion, and generation of around 10,000,000 direct and indirect jobs.
The Sagarmala Programme is the flagship programme of the Ministry of Shipping to promote portled
development in the country through harnessing India’s 7,500 km long coastline, 14,500 km of
potentially navigable waterways and strategic location on key international maritime trade routes.
Sagarmala aims to modernize India's Ports so that port-led development can be augmented and
coastlines can be developed to contribute in India's growth. It also aims for "transforming the existing
Ports into modern world class Ports and integrate the development of the Ports, the Industrial clusters
and hinterland and efficient evacuation systems through road, rail, inland and coastal waterways
resulting in Ports becoming the drivers of economic activity in coastal areas.

Q.2 Write a note on Indian Ship breaking industry. What is Hongkong convention and its effect
on
Ship Breaking.

A.2
Ship breaking refers to dismantling old ships to recover metal scrap and other materials. Till the 20th
century, ship breaking was practised extensively by the developed countries. Availability of cheap
labour, environmental hazards, and tighter regulations led to the relocation of ship breaking centres
from the developed countries to the developing countries. The Ship Breaking Industry in India
initially started blooming in the first decade of the 20th century at Kolkata and Mumbai which were
the leading ports in the country. While many other ports subsequently began ship breaking, they
eventually declined. Presently, Alang, one of the largest ship breaking yard in the world, scraps more
than half the ships of the world.
Alang is a town located on the western coast of India in the Bhavnagar district in Gujarat. The ship
breaking yard at Alang was set up in 1982. The tidal conditions of the region are favourable for the
beaching of the ships which is cost effective. Alang has around 120 ship breaking yards making it the
largest breaking centre in the world in terms of the actual number of ships broken. The industry is a
source of massive employment with the yards employing close to 40000 people. The ships are towed
and beached at the shore in an informal setting of a yard and are dismantled by the labourers almost
manually. The bow or the front portion of the vessel is dismantled first since it is less hazardous than
the stern. This provides ventilation within the vessel for dismantling of the remaining hazardous parts.
The materials are then sold as scrap.
Thus, ship breaking is a tedious process involving a lot of complex issues like ecology, labour health,
and safety. It involves immense risk since the vessels generally carry explosive material like oil and
gas. The Gujarat Maritime Board, along with a few Non-Government Organisations, has been
working towards making the environment safe for the workers and their families. The industry is
being promoted as part of the Government’s Sagarmala project for the benefit of coastal communities.
New environmental norms also promote green recycling yards that are environment sensitive.
The Ship Breaking Industry in India is rightly popular worldwide for its vessel scraping practices.

HONG KONG SHIP RECYLING CONVENTION & ITS IMPACT:

The Hong Kong International Convention for the Safe and Environmentally Sound Recycling
of Ships, 2009 (the Hong Kong Convention), was adopted at a diplomatic conference held in Hong
Kong, China, from 11 to 15 May 2009, which was attended by delegates from 63 countries.
The Convention is aimed at ensuring that ships, when being recycled after reaching the end
of their operational lives, do not pose any unnecessary risks to human health, safety and to the
environment. The Hong Kong Convention intends to address all the issues around ship recycling,
including the fact that ships sold for scrapping may contain environmentally hazardous substances
such as asbestos, heavy metals, hydrocarbons, ozone-depleting
substances and others. It also addresses concerns raised about the working and environmental
conditions at many of the world's ship recycling locations.
The effect thus will be that the control on the environmental impacts will be far more
stringent – which may at times deter the ship sellers to shy away as they may look for best prices and
the buyer for the best gain with slack regulations.

However Indian ship recyclers have turned once a declining industry into a thriving one, as post 2015
there 85 recycling yards have been certified by various IACS as HKC compliant, compared to only 2
HKC compliant yard in Chittagong Bangladesh. With growing environmental awareness and
responsibility, ship owners from throughout the world prefer to recycle their ships in India.

Q.3. Explain ISM code and two certificates - Document of Compliance (DOC) and SMC and
their validity,
issuing authority. How these are obtained by ship owner and how these certificates are issued by
issuing authority?

A.3

The International Safety Management (ISM) Code, which was adopted by the International
Maritime Organisation (IMO) Assembly in Resolution A 741(18) on 4th November 1993, aims to
provide an international management code for the safe operation of ships and for pollution
prevention. The objectives of the code are as follows:
 To ensure safety at sea
 Prevention of human injury or loss of life
 Avoidance of damage to the environment, in particular to the marine environment
and to property.

To achieve the objective of the code, every company has to develop, implement and
maintain a Safety Management System (SMS) which includes the following functional requirements:
 A safety and environmental protection policy
 Instructions and procedures to ensure safe operation of ships and protection of
environment in compliance with relevant international and flag state legislation.
 Defined level of authority and lines of communication between and amongst shore
and Shipboard personnel.
 Procedure for reporting accidents and no-conformities with the provisions of the
code.
 Procedure to prepare for and respond to emergency situations.
 Procedures for internal audits and management reviews.

The ISM Code is a management system code designed to cover the organisational
arrangements adopted by a shipping company to achieve the objectives of the code. The code
establishes an international standard for the safe management and operation of ships, by setting rules
for the organisation of company management in relation to safety and pollution prevention for the
implementation of the Safety Management System.

DOC & SMC : To ensure due and proper compliance with the requirements of the ISM Code, a
scheme of certification, verification and control is provided. The code provides that the ship should be
operated by the company which is issued a Document of Compliance (DOC) relevant to that ship, by
the Administration or an Organisation recognised by the Administration.
An assessment of the company's Safety Management System is made by the authority
concerned to ensure that the system complies with the requirements of the ISM Code. A Document of
Compliance (DOC) is therefore issued to the company. The DOC specifies the types of ships it
covers.
A copy of the DOC should be placed on board each relevant ship for being produced for
verification whenever called for. Another certificate called "Safety Management Certificate (SMC)",
is issued to each ship after an assessment of the ship is carried out by the Administration or an
Organisation authorised by the Administration to verify that the company and the Shipboard
management are operating in compliance with the code. Periodical verification of the proper
functioning of the ship's SMS as approved is carried out by the authority concerned with has issued
the relevant certificate.

Q.4. Explain Indian Offshore scenario and overall progress / problems of this sector.

A.4
India began its journey into Oil Exploration and Production just seven years after the famous ‘Drake
Well’. Chronological events are as under:-
Year Activity
1889 W.L.Lake of Assam Railway and Trading Co. (AR & T Co) commenced Digboi Well
No-1. The name “Digboi” was arrived since Lake used to urge his men “Dig boy, dig”
and hence the name was coined. This discovery in Upper Assam was a milestone in
the history of oil.
1899 A new company Assam Oil Company (AOC) was set up by AR&T and a small refinery
at Margharita (Upper Assam) with a capacity of 500 bbl/d (79 m3/d) was started to
refine the Digboi-oil.
1901 Digboi refinery was commissioned.
1911 Burmah Oil Company (BOC) enters into the Indian market.
1921 Burmah Oil Company (BOC) takes over Assam Oil Company (AOC).
1925 India’s first attempt to use geophysics with a Torsion balance survey in its search for oil.
1937-39 Seismic surveys were initiated in and a major ‘High’ was located at Nahorkatiya in
Assam The successful outcome of NHK-1 was a triumphant vindication of the
geophysical methods of exploration. Nahorkatiya triggered a new wave of enthusiasm
in the search for oil in the country and became the forerunner of discoveries not only in
Assam basin but also in other basins
1948 Geological Survey of India (GSI) started geophysical surveys in Cambay area. 1956
AOC discovers the Moran oil field. Oil & Natural Gas Commission (ONGC) was
established.
1959 Under an act of parliament, ONGC becomes autonomous body. Oil India Private Ltd (OIL)
incorporated and registered as a Rupee Company
1960 Oil struck at Ankleswar in Gujarat and Rudrasagar in Assam.
1961 GOI and BOC become equal partners in OIL.
1962 The first public sector refinery comes up at Guwahati.
1963 World's first crude oil conditioning plant commissioned at Nahorkatiya. India's first deviated
well NHK122 drilled by OIL and ONGC started offshore seismic surveys in Gulf of Cambay.
1968 Oil discovered in Geleki by ONGC. OIL commissioned the 1158 km oil pipeline to Guwahati
and
Barauni refineries India's first offshore well spudded in the Gulf of Cambay.
1970 Drillship strikes oil in Bombay High. BH discovered.
1974 First well spupped in Godavari offshore. OIL becomes a Government of India enterprise.
1981 Gas struck at Razole, Andhar Pradesh and Gotaru, Rajasthan.
1983-84 First Early Production system )EPS) commences in Gujarat. Gas struck at Gotaru in
Rajasthan
by ONGC. Oil struck in Kutch offshore, Godavari offshore and Changmaigamin.
1984-85 Oil struck in the Tapti offshore area and Namti structure (Assam) by ONGC.
1986-87 Commercial gas finds in Rajasthan by OIL, Nada field in Gujarat discovered.
1988-89 South Heera field discovered in Mumbai offshore.

New Exploration Licensing Policy (NELP) was formulated by the Government of India, during 1997-
98 to provide level playing field for all the investors and providing several concessions and incentives
to both Public and Private sector companies in exploration and production of hydrocarbons with
Directorate General of Hydrocarbon (DGH) acting as a nodal agency for its implementation. NELP
was conceptualised by Mr. Amit B Singh (co-founder of Standard Oil) after request by the
Government of India. India has an estimated sedimentary area of 3.14 million km2. consisting of 26
sedimentary basins, of which, 57% (1.79 million km2.) area is in deepwater and remaining 43% (1.35
million km2.) area is in onland and shallow offshore. At present 1.06 million km2 area is held under
Petroleum Exploration Licenses in 18 basins by national oil companies viz. Oil and Natural Gas
Corporation Limited (ONGC), OIL India Limited (OIL) and Private/Joint Venture companies. Before
implementation of the New Exploration Licensing Policy (NELP) in 1999, a mere 11% of Indian
sedimentary basins were under exploration, which has now increased extensively over the years.

New Exploration Licensing Policy (NELP) launched and 48 Exploration blocks offered under round-
I.
2000 Second round of New Exploration Licensing Policy launched and 25 Exploration blocks
offered.
2002 Third round of New Exploration Licensing Policy launched and 27 Exploration blocks offered.
2003 Fourth round of New Exploration Licensing Policy launched and 24 Exploration blocks
offered.
2005 Fifth round of New Exploration Licensing Policy launched and 20 Exploration blocks offered.
2006 Sixth round of New Exploration Licensing Policy launched and 55 Exploration blocks offered.
2007 Seventh round of New Exploration Licensing Policy launched and 57 Exploration blocks offered

Eighth round of New Exploration Licensing Policy offered and 31 blocks offered.

2010 9th round a total of 33 exploration blocks were offered. ONGC and OIL got 10 each whereas
RIL got two deep-sea blocks in the Andaman Basin in the Bay of Bengal and four onshore blocks in
Rajasthan and Gujarat. 10th round was last in its series offering more than 42 blocks and sugar-coated
with a uniform licensing model — which means under a single contract, drilling of all forms of
hydrocarbons, from oil and gas to shale could be done — and
also usher in the revenue-share model. It is with a revenue-sharing model, wherein a
bidder will be asked to quote the amount of oil or gas output it is willing to offer to the
government from the first day of production; whereas in the existing PSC, the contractors are
allowed to recover the entire cost of exploration and production before sharing the profit with the
government. However, many explorers have opposed the revenue-sharing model, citing higher risk,
particularly for deep and ultra-deep water blocks. However, many explorers have
opposed the revenue-sharing model, citing higher risk, particularly for deep and ultra-deep
water blocks.
400 PSC’s have been signed, out of which 168 are in operation. The private / JV companies
contribute about 46% of gas and 16% oil to the national Oil & Gas production. The Mangala fields in
Rajasthan and Krishna-Godavari Basins have been the major source for oil and gas fields. The
government now started Open Acreage Licensing Policy (OALP). The OALP will enable upstream
companies to bid for any oil and gas block throughout the year without government having to hold an
auction. OALP is with uniform licensing policy, open acreage and revenue- sharing model.
The data for these blocks would be made available to the bidders through the NDR. Pakistan has such
a system in place. “Uniform licensing policy would reduce monitoring and approval delays but it will
increase risk for companies in absence of assured cost recovery,” ICRA, an associate of Moody’s
Investors Service, said in a recent report.

Q.5. Write a note on technological developments in shipping.

A.5

1.The oil crisis of the seventies had a great impact on the development of shipping as the
freight and chartering market slowed. It became necessary to reduce and control operating costs. Fuel
costs in operations had increased tremendously due to high bunker prices. Modern fuel saving
measures was put in place, fuel-efficient engines and ships with special hull form were built. The
bunker purchases were made on spot basis as against the earlier system of contract. This resulted in
the entry of bunker brokers, quality inspectors etc. this era also saw the concept of ship management
companies taking shape.
2. The arrival of ship management companies changed the system of ship operations to some extent.
The seafarers were no more the employees of the ship-owner but were on contract with the ship
manager. Their stay on the ship was of shorter duration and they started changing jobs frequently. The
larger ship management companies were also able to consolidate larger shipping operations and were
able to get better deals in various aspects of operations. The re-flagging of vessels with Flags of
Convenience state allowed the owner/manager with not only an operational freedom but also
possibilities of reducing the costs. Seafarers from non- traditional seafaring countries started sailing
on the ships. Whereas earlier European vessels used to have European seafarers, today mostly these
vessels are manned with Asian officers and ratings and some other developing countries. The
dissolution of the U.S.S.R. has also provided large trained seafaring manpower to the market.
3. Over the years, now these measures have stabilized and it is quite usual to see seafarers of various
nationalities sailing onboard a particular ship. Also the traditional system of compartmentalizing, the
job on board as deck and engine crew has evolved into development of general purpose crew and
therefore to polyvalent seafarers. This has further reduced manning costs. The increased use of
automation along with high manning costs resulted in reducing the total number of seafarers on board
a ship. The technological development in the repair and maintenance area also has been quite
substantial. The use of self polishing point on the ship’s hull can extend the period between two dry-
dockings to more than 4 years. Under water surveys and bottom cleaning of the hull also, along with
fewer dry-dockings, reduces the technical costs.
4. Information technology has helped in the communications and the navigation of the ship.
The presence of satellite has also helped in these fields. The Global Maritime Distress Safety System
has not only reduced the presence of radio officer onboard ships but also assisted in search and rescue
operations (SAR) after a maritime casualty. The operating data can now be accessed by the shore
office instantaneously and therefore the ship’s performance can be monitored on ‘online’ basis and
corrective measures taken.
5. The developments referred above have definitely improved the efficiency of ship operations.
However; even with all the hi-tech equipment onboard, streamlined paper work and with lesser
number of crew onboard, the seafarer also faces difficult and demanding environment. Studies have
confirmed that the main cause of marine casualties is human error – either by way of stress or
mistakes. The STCW95 now has addressed the question of minimum rest period for watch keeping
personnel onboard.
6. The technological development is a natural process and is likely to induce changes in the
ships and methods of ship operations in future too. The business of moving the cargo from one port to
another port has changed substantially in last few decades and will change further in future.
7. Global warming is changing where merchant ships can operate. Probably the most
significant change is the Arctic where the Northeast Passage above Russia, and the Northwest
Passage, through Canada's northern islands, represents short cuts from Asia to Europe and North
America. A summer, ice- free Arctic Ocean is a climate change problem that benefits marine shippers
looking for safe passage through the Arctic. Shorter routes mean lower fuel consumption and less
environmental pollution.
Q.6. Discuss briefly the role of IMO and its slogan” safe, secure and efficient shipping on
clean oceans”.

A.6

As a specialized agency of the United Nations, IMO is the global standard-setting authority for the
safety, security and environmental performance of international shipping. Its main role is to create a
regulatory framework for the shipping industry that is fair and effective, universally adopted and
universally implemented.
In other words, its role is to create a level playing-field so that ship operators cannot address their
financial issues by simply cutting corners and compromising on safety, security and
environmental
performance. This approach also encourages innovation and efficiency.
International shipping transports about 90 per cent of global trade by volume and 70% by value to
peoples and communities all over the world. Shipping is the most efficient and cost- effective method
of international transportation for most goods; it provides a dependable, low-cost means of
transporting goods globally, facilitating commerce and helping to create prosperity among nations and
peoples.
The development in shipping, especially technological and economical in the early part of this
century led to an increase in number and types of ship moving internationally. A need was felt to have
an international body in place for controlling the shipping with respect to safety. An organization
called Inter-Governmental Maritime Consultative Organization (IMCO) was therefore established by
a Convention adopted in Geneva in a conference convened by the United Nations in 1948. IMCO
however started its operation in January 1959. IMCO changed its name to IMO in 1982. The purpose
of the IMO included, encouraging the general adoption of the highest practical standards in matters
concerning maritime safety and efficiency of navigation.
Shipping is an essential component of any programme for future sustainable economic growth.
Through IMO, the Organization’s Member States, civil society and the shipping industry are already
working together to ensure a continued and strengthened contribution towards a green economy and
growth in a sustainable manner. The promotion of sustainable shipping and sustainable maritime
development is one of the major priorities of IMO in the coming years.

Energy efficiency, new technology and innovation, maritime education and training, maritime
security, maritime traffic management and the development of the maritime infrastructure: the
development and implementation, through IMO, of global standards covering these and other issues
will underpin IMO's commitment to provide the institutional framework necessary for a green and
sustainable global maritime transportation system.

The objectives of IMO are now epitomized in its slogan “Safer and Secure Shipping and Cleaner
Oceans”. The IMO creates and adopts conventions which are ratified by the countries. A convention
usually only comes into force after a notified period subject to a certain number of states representing
a certain percentage of the world fleet ratify it; e.g. SOLAS entered into force ….. months after 25
countries whose combined fleet represented 50% of the world tonnage adopted it.

Q.7. Explain Ship’s Registry and Flag state. Explain in detail FSC’s functions, responsibilities
and
its importance.

A.7
Ship Registry:
Ship registry refers to the registration of the shipowner, the name of the ship, the technical data and
performance parameter of the ship, and other contents carried out by the national ship registration
authority according to the relevant international conventions and national laws. Ship registry is not
only a necessary condition for a ship to acquire nationality and navigation right, but also an
administrative means for the flag State to effectively manage ships engaged in related shipping trade.
It is also a legal means to confirm the ownership, mortgage and lease of a ship.

Flag State Control: In relation to a ship, the country in which it is registered is the Flag state. It is the
duty of the flag state to ensure that the ship entitled to fly its flag is safely constructed, equipped and
subsequently properly maintained and manned as per regulation based on the international
Convention developed by IMO for this purpose. When a country exercises control over a ship that is
registered in that country such control is called Flag State control.
The Flag State carries out survey and inspection on the vessel for issuance of various statutory
certificates.

Role and responsibility of Flag States:

It is the responsibility of flag States to ensure that they establish and maintain measures for
the effective application and enforcement of the IMO instruments to which they are a party. From
the point of view of flag State implementation the most significant IMO instruments are:
(1) the International Convention for Safety of Life at Sea 1974 (SOLAS 74) as amended;
(2) the International Convention for the Prevention of Pollution from Ships, 1973 as
modified by the Protocol of 1978 relating thereto (MARPOL 73/78), as amended;
(3) the International Convention on Load Lines, 1966 (LL 66);
(4) the International Convention on Standards of Training, Certification and Watchkeeping
for Seafarers, 1978 (STCW 78), as amended;
(5) the Convention on the International Regulations for Preventing Collisions at Sea, 1972,
(COLREG 72), as amended; and
(6) the International Convention on Tonnage Measurement of Ships, 1969, (Tonnage 69).
Regard should also be given to the United Nations Convention on the Law of the Sea (UNCLOS).
Legal framework :
A flag State should:
(A) take measures to ensure safety at sea and pollution prevention for ships entitled to fly
its flag with regard to:
1. the construction, equipment and management of ships;
2. the principles and rules with respect to the limits to which ships may be loaded;
3. the prevention, reduction and control pollution of the marine environment and the
minimization of the impact of accidental discharges of pollutants;
4. the manning of ships and the training of crews; and
5. the safety of navigation (including taking part in mandatory reporting and routing
systems), maintenance of communications and prevention of collisions;
(B) promulgate laws which permit effective jurisdiction and control in
administrative, technical and social matters over ships flying its flag and, in particular,
elating to the inspection of ships, safety and pollution prevention laws applying to such
ships and the making of associated regulations;
(C) promulgate laws providing the legal basis for the establishment of a registry and
maintain a register of ships flying its flag.
Enforcement :
(A) A flag State should:
1. provide for the enforcement of its national laws, including the associated investigative and penalty
processes;
2. take appropriate action against ships flying its flag that fail to comply with applicable requirements;
3.ensure the availability of sufficient personnel with maritime and technical expertise to carry out its
flag State responsibilities, including:
(a) the development and enforcement of necessary national laws;
(b) the establishment and maintenance of minimum safe manning levels on board
ships flying its flag and provision of effective certification of seafarers;
(c) inspection of ships flying its flag to ensure compliance with the requirements of
international instruments to which the flag State is a Party;
(d) reporting of casualties and incidents as required by the respective instruments;
and
(e) investigation of circumstances following any detention of ships flying its flag.

Q.8. Write a note on Maritime piracy and marine frauds. And how it can be avoided.
A.8

Maritime Piracy is defined by the 1982 United Nations Convention on the Law of the Sea
(UNCLOS) Article 101, as follows:

(a) any illegal acts of violence or detention, or any act of depredation, committed for private ends by
the crew or the passengers of a private ship or a private aircraft, and directed:

(i) on the high seas, against another ship or aircraft, or against persons or property on board such ship
or aircraft;
(ii) against a ship, aircraft, persons or property in a place outside the jurisdiction of any State;

(b) any act of voluntary participation in the operation of a ship or of an aircraft with knowledge of
facts making it a pirate ship or aircraft;
(c) any act of inciting or of intentionally facilitating an act described in subparagraph (a) or (b).

Maritime Piracy is a crime under international law, although in order to meet the criteria set out by
UNCLOS Article 101, the attack needs to occur on the high seas, that is to say, in international waters
and not in a country’s Territorial Waters (TTW) are defined by UNCLOS as:

“A belt of coastal waters extending at most twelve nautical miles from the baseline (usually the mean
low-water mark) of a coastal state.”

A pirate attack may include (though not limited to) the following:

- Use of violence against a vessel or its crew or any attempt to use violence
- attempt to board a vessel (where it is suspected that the assailants are pirates)
- An successful boarding whether control of the vessel was achieved or not
- Attempts to counter the ships defences and Ship Protection Measures by use of ladders,
grappling hooks and weapons deliberately used against the vessel.

The aim of piracy is to extract the maximum monetary value possible by:

- Hit and Run - Theft of ships' cash and/or stores

- Kidnap for ransom- removal of persons to extort release money
- Hijack for Ransom- detention of the target to extort release money
- Stealing ship and cargo - targeting of vessels (often during Ship-Ship operations) to remove
cargo.

Factors favour pirate operations:

- Legal and jurisdictional opportunities

 - Favourable geography

- Conflict and disorder

- Under-funded law enforcement/inadequate security

- Permissive political environments

- Cultural acceptability/maritime tradition

- Reward

Piracy prevention:
IMO recommendations to tackle piracy attacks:

A) Recommendations to Governments for preventing and suppressing piracy and armed

robbery against ships (MSC/Cir.622/Rev.1)

B) Guidance to ship owners and ship operators, shipmasters and crews on preventing and
suppressing acts of piracy and armed robbery against ships (MSC/Cir.623/Rev.1).

C) Although the piracy risk off Somalia has reduced from its peak of several years ago, the
possibility of piracy, armed robbery and terrorist attack in this region and elsewhere are
very much still evident. In light of new developments, the Best Management Practices to
Deter Piracy and Enhance Maritime Security in the Red Sea, Gulf of Aden, Indian Ocean
and Arabian Sea has been updated, with the participation of the International Group of
P&I Clubs, and a new version (BMP5) has been published in June 2018.

Maritime Fraud: The International Maritime Bureau defined maritime fraud as:

“An international trade transaction involves several parties – buyer, seller, ship-owner, charterer,
ship’s master or crew, insurer, banker broker or agent. Maritime fraud occurs when one of these
parties succeeds, unjustly or illegally, in obtaining money or goods from another party to whom, on
the face of it, he has undertaken specific trade, transport and financial obligations.”

Maritime fraud is becoming more common due to a number of reasons:

- Criminals are increasingly turning to new methods such as computer hacking
- Ports are adopting new technologies that in the worst case can enable new types of fraud
(such as automatise container operations)
- Ship-owners are under pressure to win new business, many have disregarded due diligence
when dealing with new business partners.

Few examples of fraud are:

- Bunkering Frauds
- Cargo and document frauds
- Chartering frauds

- Port related frauds

The key to preventing being a victim of fraud is vigilance. Being alive to the risks, taking due care to
prepare and then ensuring diligent follow up, will mitigate against the worst and helps to ensure that
business reputations and profits are protected. The following are a number of general guidelines for
preparing an organization and its employees from frauds:

1. Educate the company from top to bottom about the risks, the company’s policy and expectations

2. Ensure there is visible and unequivocal Management support for a pro-active stance

3. Have a clear set of internal mandatory rules and guidelines for staff to follow.

4. A designated Company Officer should check staff compliance with the guidelines

5. Have clear guidelines as to what is considered to be “suspicious” and ensure simple and quick
reporting procedures

6. Provide an anonymous reporting mechanism in place so that employees, suppliers and customers
can – if they wish – make a report in confidence

7. Have a clear procedure as to how to deal with a suspected fraud situation

8. Determine in advance what possible resources may be needed in case a fraud situation arises

9. Have clear guidelines on how to dispose of old and / or cancelled documentation, sensitive
documents should never just be “thrown away”, but may need to be shredded or subject to further
destructive methods

10. Digital copies of documents and / or digital databases need to be kept secure;

11. A strong IT policy is needed to cover:

a. Internal communication

b. External communication

c. Custody of digital records and databases

d. On-line security policies

12. Ensure that Suppliers and Vendors are thoroughly checked and confirmed, these checks should be
repeated

periodically

13. Conduct due diligence for every new counterparty

14. Employ robust 3rd party screening for both internal audits as well as counterparty checks

15. Have an unequivocal company culture, lead from the top, against fraud, corruption, bribery and
other activities which may be illegal and / or unlawful.