International Safety Management (ISM ) Code

29 March 2002 No.01-018

As we advised in our circulars No.97-005 (dated 7th July, 1997) and No.97-013 (dated 13th January, 1998), the deadline for the implementation of phase two of the ISM Code will be 1st July, 2002. Companies who operate and/or manage all cargo ships engaging international trade including general cargo ships, container ships and mobile offshore drilling units, will be required to maintain a Document of Compliance (DOC) and their vessels in the aforesaid category must hold a Safety Management Certificate (SMC) on board complying with the Code.

The association would like to call members' special attention to the Association's Rule 16-1(6) which reads "The Member must comply with all statutory requirements of the state of the ship's flag and the International Safety Management (ISM) Code relating to the construction, adaptation, condition, fitment, equipment, manning, operation and management of the Entered Ship, and must at all times maintain the validity of such statutory certificates as are issued by or on behalf of the state of the ship's flag in relation to such requirements and in relation to the International Safety Management (ISM) Code." If a member fails to comply with the requirement, the association may reject any claim by the member or reduce the amount of payment under the Rule 16-2.

Although we believe that most of our members have completed the procedures to obtain the ISM Certificates, we recommend, those who have not, if any, should expedite the procedures to meet the deadline.