COMPANY PERFORMANCE

 

1.         PREAMBLE

A significant parameter in calculating the risk posed by a vessel is the performance of the Company responsible for the Safety Management (ISM) of that ship. This consideration led the EU legislator to include within the risk factor for determining which vessels will be subject to port State control inspection in accordance with Directive 2009/16/EC. Furthermore, to take account of the results of such inspections a list of poor performing “ISM managers” has been established. The list includes the companies that having had the vessels for which they are responsible subject to Port State control inspections and on the basis of those inspection results demonstrate an unwillingness or inability to comply with the international conventions on maritime safety and on the protection of the marine environment.

 

2.         LEGAL BASIS

  1. Directive 2009/16/EC of the European Parliament and of the Council of 23 April 2009 on port State control (as amended).
  2. Directive 1999/35/EC of 29 April 1999 on a system of mandatory surveys for the safe operations of regular ro-ro ferry and high-speed passenger craft services.
  3. Commission Regulation (EU) No 1205/2012 of 14 December 2012 amending Regulation (EU) No 802/2010 implementing Article 10(3) and Article 27 of Directive 2009/16/EC of the European Parliament and of the Council as regards company performance.

 

3.        BASIC INFORMATION ON COMPANY PERFORMANCE

In accordance with Article 5 of Directive 2009/16, ships are targeted for inspection on the basis of their “risk profile”. Each ship recorded in the Port State Control information and targeting system (THETIS) is allocated a risk profile based on the following criteria: type of ship, age of ship, flag, Recognised Organization (RO), company performance, number of deficiencies and number of detentions.

The company performance is established using the number of inspections, detentions and deficiencies recorded against ships for which the same company is responsible for the Safety Management (ISM) within the inspection region of the Paris Memorandum of Understanding on Port State Control (Paris MoU) at the time of inspection. Only inspection results recorded in the 36 months prior to the date of publication are taken into account.

The calculation leads to a ranking into one of four distinct grades: “High”, “Medium”, “Low” and “Very low”.

A detailed description of the way the Company Performance is established can be found under point 6.

 

4.        PUBLICATION OF A LIST OF COMPANIES

Article 27 of Directive 2009/16/EC provides that the European Commission establish and publish on a public website information on companies whose performance is considered low, very low or intermittent low or very low for a pre-determined period.

The task of drawing up and publishing the list is delegated to the European Maritime Safety Agency (EMSA) by Article 1 of the Regulation (EU) No 1205/2012.

Three lists are drawn up and updated daily:

  1. The list of companies whose performance has been very low for a continuous period of 36 months;
  2. The list of companies whose performance has been low or very low, for a continuous period of 36 months;
  3. The list of companies whose performance has been low for a continuous period of 36 months.

5.        DATA TAKEN INTO ACCOUNT FOR THE COMPOSITION OF THE LISTS

The “Company” is the entity which has assumed the duties and responsibility imposed by the International Safety Management code (as referred to in Chapter IX of the International Convention for the Safety of Life at Sea (SOLAS)) , and identified through the unique ISM Company number.

The company performance of each Company is established using the number of inspections, deficiencies and detentions of all ships for which the company is responsible for a period of 36 months directly preceding the publication.

The inspections, deficiencies and detentions, as well as all the ship and company information are those that are recorded and validated in the inspection database by Paris MoU Member States. Where relevant (in cases where the inspecting EU State is not the flag State of the ship), inspections in accordance with Articles 6 or 8 of Directive 1999/35/EC (Ro-Ro ferry inspections) are also taken into account.

The methodology for determining the company performance is based on the processing of a detention index and deficiency index as set out in the following matrix (Annex of Regulation (EU) No 802/2010):

Detention Index

Deficiency Index

Company Performance

above average

above average

very low

above average

average

 

low

above average

below average

average

above average

below average

above average

average

average

 

medium

average

below average

below average

average

below average

below average

high


However, if a company has no previous records of inspections carried out on any ship in its fleet or if is not required to have an IMO Company number, it shall be considered as having medium performance.

6.        CALCULATION METHODOLOGY

 

The calculation of a company performance is performed as follows:

a) Calculation of the detention index;

b) Calculation of the deficiency index;

c) Comparison of the above mentioned indexes with the matrix provided by the Annex of Regulation (EU) No 802/2010.

 

 

a)        Company Detention Index

 

Calculation

Company Detention Index:

Company Detention Ratio as compared to the Paris MoU Average Detention Ratio.

Company Detention Ratio

Number of detentions of all ships for which a Company is responsible within the previous 36 months, divided by the number of inspections of all ships for which a Company is responsible in the same period.

Paris MoU Average Detention Ratio

Number of Paris MoU detentions within the last three full calendar years, divided by the number of inspections in Paris MoU region in the same period.

Frequency of calculation

The Company Detention Ratio is re-calculated on a daily basis.

The Paris MoU Detention Ratio is recalculated on an annual basis and remains unchanged for one year. It is updated on 1 July of any year.

The Detention Index of a Company is re-calculated on a daily basis


 

Matrix to define the Company Detention Index:

 

(2) The Average Detention Ratio above was only valid until 30.06.2012

 

 

 

above average

if Company Detention Ratio is 2% above Paris MoU Detention Ratio

Company Detention Index

average

if Company Detention Ratio is within a 2 % margin on either side of the Paris MoU detention ratio

 

below average

if Company Detention Ratio is 2% below Paris MoU Detention Ratio

 

If a refusal of access has been issued, the Detention Index is Above Average regardless of the value of the Detention Ratio.

 

b)        Company Deficiency Index

 

Calculation

Company Deficiency Index:

Company Deficiency Ratio compared to the Paris MoU Average Deficiency Ratio.

Company Deficiency Ratio:

Total number of points awarded to all deficiencies encountered of all ships for which a Company is responsible within the previous 36 months, divided by the number of inspections of all ships for which a Company is responsible within the same period.

Paris MoU Average Deficiency Ratio:

Total number of points awarded to deficiencies encountered within the last three full calendar years, divided by the total number of inspections in the Paris MoU region in the same period.

Frequency of calculation:

The Company Deficiency Ratio is re-calculated on a daily basis.

The Paris MoU Deficiency Ratio is recalculated on an annual basis on 1st July and remains unchanged for one year.

The Deficiency Index of a Company is re-calculated on a daily basis

Additional information:

For the purpose of company performance calculation, the deficiencies are separated in two categories:

·         those related to technical issues (including manning); and

·         those related to breaches of provisions of the ISM Code which are weighted 5 times as much as those related to technical issues.

 

Matrix to define the Company Deficiency index

(2) The Average Deficiency Ratio above was only valid until 30.06.2012

 

 

above average

if Company Deficiency Ratio is 2 above points Paris MoU Deficiency Ratio

Company Deficiency Index

average

if Company Deficiency Ratio is within a 2 points margin on either side of the Paris MoU Deficiency Ratio

 

below average

if Company Deficiency Ratio is 2 below points Paris MoU Deficiency Ratio

 

7.        FURTHER INFORMATION

An on line calculator which allows any Company to calculate its own performance is provided on the EMSA website.


 

Example:

An ISM Company with 25 inspections, 2 detentions, 10 deficiencies, 2 ISM deficiencies and O ban as recorded in the preceding 36 months

Based on the average detention and deficiency ratio of the year 2012 the Detention index is above average and the deficiency index is average, resulting in a Low company performance. If this condition is kept for 36 months on a continuous basis, the Company name will be added automatically to the Low performance Company list and published accordingly until the calculation provides another result.

 

The calculation is done on a daily basis, thus the period of reference (preceding 36 months) changes daily as well. Consequentially, a Company could change its profile subject to the various differing parameters taken into account. Only companies which keep their low, very low or intermitting low and very low performance for 36 months on a continuous basis are included in the above lists.


8.        FREQUENTLY ASKED QUESTIONS

FAQs:

What does the Company of a ship mean?

The “Company” is the entity responsible for the Safety Management (ISM) on board ships. It is identified through the unique ISM Company number and is recorded on the Safety Management Certificate of the ship during the PSC inspection.

Why is the Company performance calculated?

Because the company is one of the criteria used for the calculation of the ship risk profile in accordance with the Inspection regime embedded in the Directive 2009/16/EC on port State control.

Which are the inspections that are taken into account for the calculation of a company performance?

All the inspections carried out on all ships in a Company’s fleet within the European Union and within the region covered by the Paris Memorandum of Understanding on port State control (Paris MoU)

Is the low/very low or intermitting low and very low performance for a continuous period of 36 months of a Company an indicator of bad management of a ships’ fleet?

Yes, it is. A consistently poor performance for such an extended period demonstrates failure by the Company to comply with the international conventions on maritime safety, on the protection of the marine environment and on maritime labour standards.

Can a Company monitor its own performance?

Yes, it can. An on line calculator is provided on EMSA and Paris MoU web sites. (www.emsa.europa.eu or www.parsimou.org)

What can a Company do in case of complaints concerning the correctness of the lists published?

Queries may be addressed to EMSA through the generic email address info@emsa.europa.eu

Following initial investigation the respondent may be referred to the relevant Port State Control Authorities bearing in mind that the lists are compiled as result of inspections carried out and validated by Member States. Member States have the obligation to have procedures in place for the management of any complaints or appeal against the results of PSC inspections carried out by their authorities.

When is the list of low/very low or intermitting low and very low performing company updated?

The list is updated daily.

When can a company experience a change on its performance?

The calculation is done on a daily basis, therefore the period of reference (the preceding 36 months) changes daily as well. Only companies which have a low, very low or intermitting low and very low performance for 36 months on a continuous basis are included in the above lists.

 

If a ISM company sells a ship are inspections still taking into consideration for the calculation of the company performance

Inspections carried out after the ship has been sold will be not taken into consideration for the previous ISM company

 

Does the banning of a ship have an influence on the company performance?

Yes. For a company which were responsible at the time of the ban the detention index will be “above average”

 

Does the flag of the ship have an influence on the company performance?

No. The flag will be taken into account for the calculation of the Ship Risk Profile but not for the calculation of the company performance