“Port State Control in Australia”

1. Port State Control in Australia Guidance to Class, Operators and OwnersPSC Should not be something to fear andJust what will we do with Annex VI. “Port State Control in Australia”

2. Today’s Discussion • About AMSA • Ship Risk Assessments • Inspection Statistics & Targeting • PSC (We aim to be firm but fair) • What to expect, • Appeal processes (noting we encourage the use of this process) • MLC • PSC and MARPOL ANNEX VI • PSC and operational requirements • PSC and “why is the simple stuff still a problem?”

3. AMSA Vision Most of you have heard AMSA’s vision… this is: Safe shipping, clean seas and saving lives Hardly original but accurate in that it reflects the fact that AMSA has carriage of ship safety as well as emergency response related to the safety of the environment and safety of life

4. Operating Environment Australia is the largest island nation in the world • 3rd largest EEZ – 10 million km2 • 60,000 km of coastline with 12,000 islands • 79 ports receive about 27,000 international visits • 10% of earths surface equates to SAR Region • 10% of world sea trade • Covers 5 of the world’s ocean climate zones • 6 maritime boundaries

5. Ship Inspection – What is it all about?

6. How AMSA achieve this … AMSA achieve this objective through Port State Control (PSC) and Flag State Control (FSC) inspections. As you all know the process which covers ….. • Confirmation of compliance with international safety & environmental protection standards • Identification of Ships for inspection based on factors such as ship type, age and inspection history • Action taken where ships are found to have major deficiencies ….. which ‘may’ include detention AMSA aim for a firm but fair approach in ensuring conventions are applied effectively, ships are safe and do not present a risk to the environment.

7. Is there an increasing risk – Perhaps! As we will indicate the 2018 PSC results were pretty good … however, We should not be complacent. General safety, issues with operational requirements and port navigational practice remains a major area of concern

8. Does the future present challenges – Yes!!! We are all aware of the forthcoming changes to the sulphur cap and ongoing changes in regulation related to protection of the environment. To address these needs there has been a surge in efforts to look at alternatives in relation to the powering and operation of vessels. Many of these a novel and the technology not well understood by most seafarers. The pace of change presents a challenge and risks and will necessitate a long term view from flags and operators.

9. PORT STATE CONTROL IN AUSTRALIA Results for 2018 With some comparisons back to 2017 Note: The 2018 PSC report has been finalised and has been published on the AMSA web site

10. 2018 Figures – Activity and outcomes 2018 was a very good year from a PSC perspective. This followed on from good results from 2015. 2017 saw the lowest detention rate since 2006 and it remained low in 2018. In 2018 deficiencies per inspection were their lowest since 2004

11. 2018 Figures – Activity and outcomes PSC Results over 10 years compared Note: 2017 and 2018 saw much better results than past years

12. Summary of 2018 and 2017 – Key Points • Individual Ship arrivals increased by just 27 (0.5%) to 5900 ships • Foreign flag port arrivals increased by 592 (2.0%) to 29094 ships • The number of PSC inspections reduced by 206 (6.6%) • The total number of deficiencies recorded decreased by 1764 (33.2%) to 5320 deficiencies. The number of deficiencies issues has dropped by around 50% since 2017. • The total number of detainable deficiencies increased by 13 (5.6%) to 232 • The deficiencies per inspection decreased significantly from 2.3 in 2017 to 1.8 in 2017 • The detention rate increased slightly from 5.28% in 2017 to 5.51% in 2018. • The number of ships detained decreased from 165 in 2017 to 161 in 2018 (this is the lowest number since 2007)

13. Summary of 2018 and 2017 – Key Points • The growth in foreign-flagged shipping activity remains geographically disparate. Port Hedland remains the busiest Australian port for foreign ship visits, accounting for 10.4% of arrivals nationwide (10.2% of arrivals in 2017). • Foreign The trend of visiting ships increasing in size continued with average gross tonnage increasing from 50,505 in 2016 to 51,808 in 2018. • The average age of all foreign vessels arriving has increased slightly to 10 years in 2018. Note: The increase port visits is slowing in 2018 and arrival may drop below 29000.

14. Summary of 2016 to 2018 – Key Points Historically from 2013 the proportion of priority one vessels decreased and the proportion of priority four vessels increased.

15. 2018/17 Figures – Arrivals by ship type 2017 2018 Basically no real change!!!

16. 2018 Figures – Arrivals by ship type

17. Summary of 2018 – Inspections by flag state Panama clearly make up the greatest proportion with 622 vessels inspected (942 in 2016 and 763 in 2017) Marshall Islands flagged ships account for 377 vessels inspected (#5 at 358 in 2016 and #2 at 337 in 2017) Liberian flagged ships account for 340 vessels inspected (#4 at 360 in 2016 and 340 in 2017) Hong Kong flag ships account for 306 vessels inspected (#2 at 426 in 2016 and #5 with 311 in 2017) Singaporean flag ships account for 292 vessels inspected (#3 at 369 in 2016 and 328 in 2017) Note: The same 5 flag states have been in the top 5 since 2014 As in 2017, in combination these 5 flags states accounted for 65% of the total inspections in 2018

18. 2018 – PSC Inspections by flag state Inspections of the Top 12 flag states In 2018 the top 12 flags accounted for 2665 of the 3328 inspections undertaken. That is 83.7% of the total (compared to 85.2% in 2017)

19. 2018 – PSC Inspections by Ship Type 2015 – PSC inspections by ship type In 2018, AMSA surveyors carried out 2292 initial PSC inspections (3128 in 2017) and 1846 PSC follow up inspections (2040 in 2017) in compliance with international conventions, associated codes, resolutions and Australian legislation.

20. 2018 – PSC Inspections by Ship Type 2015 – PSC inspections by ship type

21. 2018 – PSC Deficiencies per inspection by ship type Note: Only vessel types that had 10 or more inspections are included.

22. 2018 – PSC Deficiencies by category and ship type

23. 2018 – PSC Deficiencies per inspection by ship type Note: Only vessel types that had 10 or more inspections are included Figures in red are in the top five worst outcomes Figure in blue are above the average for detention and deficiency rates

24. 2018 – PSC Deficiencies per inspection by ship type Deficiencies per inspection for: • Structural/equipment = 0.9 (1.1 in 2017) (down) • Operational = 0.4 (0.4 in 2017) (no change) • Human factors = 0.4(0.3 in 2017) (down) • ISM = 0.1 (0.1 in 2017) (no change) • MLC = 0.2(0.3 in 2017) (down)

25. 2015-18 Top 5 – Detainable Deficiencies Labour conditions came in at number 6 in 2018 with 9.1% of detainable deficiencies. In 2018, AMSA continued its ongoing work with flag States and ship owners to increase awareness of areas of concern and to improve PSC performance. The significant reduction in the number of detainable deficiencies and the low detention rate appear to validate this approach.

26. 2016-18 Top 5 – Detainable Deficiencies

27. 2018 Detentions by ship type • The number of detentions by ship type would appear to indicate that bulk carriers have a problem … • However, these figures need to be looked at in proportion to the number of ships in that type. • In this case, the worst performers in 2018were …

28. 2018 Top 5 Detentions Rate by ship type Container ships and general cargo ships in combination made up over 20% of all arrivals in Australia in 2018 and 2017. The continued Relatively poor performance of these vessel types is of great concern.

29. 2018 Detentions by ship type With respect to the 2018 figures …. • 1585 bulk carriers were inspected and 3272 deficiencies were issued. 93 ships were detained. In 2017, 1732 bulk carriers were inspected, 4707 deficiencies issued and 106 ships were detained. The 2018 detention rate of 5.9 per cent is an improvement on the 2017 result when the detention rate was at 6.1 per cent. • Livestock carriers improved in 2018 with 107 deficiencies resulting in four detentions and a detention rate of 7.7 per cent, compared with the result in 2017 where 164 deficiencies were issued, resulting in five detentions and a detention rate of 10.2 per cent. • Passenger ships performed worse in 2018 compared to 2017. Passenger ships were issued with 68 deficiencies resulting in two detentions and a detention rate of 3.6 per cent. In 2017, 49 deficiencies were issued and there were no detentions

30. PORT STATE CONTROL IN AUSTRALIA Flag performance

31. 2018 Flag Performance – 10 or more Inspections AMSA assesses flag state performance by detention rate and the associated proportion of detentions related to inspections. Essentially poor performance is where if the detention share is greater than the inspection share.

32. 2018 Flag Performance – 10 or more Inspections

33. 2018 Flag Performance – Detention Rate In considering the “above average” detention rate it is pertinent to note that even a single detention can push a flag above average. To get an accurate indication of performance a longer period should be considered.

34. 2016 - 2018 Flag Detention Rate Note: this list only includes vessels above the average detention rate for the year in question

35. PORT STATE CONTROL IN AUSTRALIA RO Performance

36. 2018 RO Performance by Main RO’s 2018 Average detention rate 5.6%

37. PORT STATE CONTROL IN AUSTRALIA Targeting and Risk

38. Risk Factors predicted and Actual The term risk factor may be misleading. The risk factor is a number used to determine the priority for inspection …. It does not mean the ship is “high risk” or otherwise, however: • The actual outcomes are reasonably close to predicted outcome (percentage detention rate). • The risk factor permits AMSA to better manage resources to the inspection of ships that pose a greater threat. • AMSA has a revised risk calculator that is based on additional data and will go into use in the second half of 2018 with and is undertaking research on predictive models to assess the risk of ‘potential’ incidents and a tool to further improve resource allocation and inspection priority.

39. Ship arrivals by Risk Factor

40. Risk Factors & Inspection target rates

41. Inspection targets and inspection rates Effort is directed at high risk vessels Low priority ships get inspected less than other risk groups.

42. AMSA Ship Targeting 2015-2017 Since the introduction of the targeting system in 2003 the number of deficiencies per inspection have generally aligned with priority groups.

43. Arrival System Risk grouping and factors Alert symbol Red indicates eligible for inspection Indicates expired certificate

44. PORT STATE CONTROL IN AUSTRALIA Summary for 2018 and what is happening in 2019 to date.

45. Main outcome for 2018 Figures for 2018 indicated that • The rate of deficiencies per inspection; and • The detention rate are both at record lows over the last decade. The overall picture indicates that AMSA’s PSC regime exerts a positive influence on the quality of ships arriving in Australia. However, AMSA is aware of emerging issues that may compromise that outcome.

46. Where are we in 2019

47. Prioritisation outcomes for 2018 PSC performance against Priority Groups – There has been discussion about the effectiveness of the priority groups with PSC targeting. There is scope for improvement and a new algorithm will be delivered in 2020. However, current ‘risk rating’ (prioritisation tool) continues to perform as indicated below for 2018.

48. PORT STATE CONTROL IN AUSTRALIA What to expect and Appeals

49. PSC – What to Expect • Targeting - Risk based …. as evidenced by the outcomes for 2017. • Clear understanding of purpose • Polite, courteous approach • Clear communication • Legible handwriting • Discussion on findings • Consistency between ports and surveyors (AMSA 36)

50. PSC - Some Suggestions Be honest – disclose all defective equipment before the inspection commences. • Requirement of SOLAS Chapter I Regulation 11; but • Relaxations afforded provided appropriate steps taken • Don’t try to hide things • If in doubt, report it. • Have rectification action in place where necessary • Be fully aware of your ship and how everything works • Question findings – make sure you understand what the deficiencies mean The AMSA Surveyor should provide you a letter spelling out the intent of the PSC at the beginning of the process. This includes a contact you can use if you have any concerns about the conduct of the PSC.