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The shipping industry is an extremely professional line of work with set rules and guidelines with regard to the personnel that serves on ships as well as the operation of the ship itself.

To have a standardized system of working on board, the presence and implementation of rules and regulations are imperative; it is for this reason that shipboard operations are directly mandated and under the purview of Conventions, Regulations and, for the purposes of the comprehension of this article, codes.

The presence of the aforementioned ensures that all operations pertaining to seafaring are bound by the presence of an agreed upon framework to maintain legal operating condition of ships, shipping operator or company, and the ship’s crew with the intention to upkeep the safety of personnel or property and eliminate and/or minimise pollution or damage to the marine environment.

The International Maritime Organisation (IMO) is responsible to implement and amend different codes as per types of ships, goods or cargoes, Cargo operation, maritime security, shipbuilding, the safety of the crew, training etc. Failure to comply with such Codes renders any shipboard operation to legal liabilities.

Following is a list (indicative and not exhaustive) of maritime codes put forth by IMO and used by ships and companies as per the regulations:

1) IMDG Code(International Maritime Dangerous Goods): Code for carrying dangerous cargo through sea transport. This Code is in place to regulate the carriage of international guideline to the safe transportation or shipment of dangerous goods or hazardous materials by water on the vessel.

2) IMSBC Code(International Maritime Solid Bulk Cargo Code): is a mandatory regulation for carrying solid cargo in bulk form. This replaces the BC Code and ensures safe stowage and shipment of solid bulk cargoes.

3) IGC Code(International code for construction and equipment of ships carrying liquefied gases in bulk): This code gives guidelines to gas tankers on operational, construction and safety aspects. As with the other forms of cargo and their respective codes, this code is specific to the carriage of LPG?

4) International Grain Code: This code is applicable to all ships carrying grain in bulk. The term “grain” covers wheat, maize (corn), oats, rye, barley, rice, pulses, seeds and processed forms thereof, whose behavior is similar to that of grain in its natural state.

5) IBC Code(International code for construction and equipment of ships carrying dangerous chemicals in bulk): This code pertains to the carriage of chemicals in bulk and the design, construction, equipment with respect to the ship and the cargo.

6) ISPS Code(International Ship and Port Facility Security code): Springing from the events preceding 9/11, this code lays the minimum security measures for ships and ports.

7) ISM Code(International Safety Management Code): Perhaps one of the most important codes, one that is used in the day to day functioning of the ship, it is in place for the safe operation of the ship for the purposes of pollution prevention.

8) INF Code(International code for Safe Carriage of Packaged Irradiated Nuclear Fuel): Plutonium and High radioactive waste on board ship is a complete guideline for all ships including cargo ships of 500GT and above carrying INF listed cargo.

9) IS Code(International Code for Intact Stability): gives the construction guidelines to vessels to maintain the stability of the ship at all working conditions.

10) TDC Code(Code of safe practices for ships carrying Timber Deck Cargo): gives complete guidelines for loading, stowage, construction, and equipment. This code came about as a revision to the code adopted in 1991.

11) Casualty Investigation Code: Shipboard can be hazardous and the nature of the work can, under unfortunate circumstances, result in a casualty onboard. This code is used to solve or to study the casualty happened on board with the ship or with its crew.

12) CSS Code(Code of Safe Practice for Cargo Stowage and securing): is a guideline for onboard staff to store and secure the cargo as per the requirement.

13) SPS Code(Code for the safety of Special Purpose Ships): which include drilling, cable laying, Flip ship (survey ship) etc, basically for ships that are of unusual construction as compared to the conventional merchant ships. This code elaborates all the safety aspects of such ships from construction to operation.

14) STCW Code(Seafarer’s training, certification and Watch keeping): code is a guideline for producing competent seafarers all over the world. This code has recently been amended in 2010 at Manila and the revised version will enter from 1st Jan 2012. Note that this is one of the most important codes and every aspiring and existing seafarer must be thorough with the provisions of this code

15) OSV Code(Code of safe practices for Offshore Supply Vessel): is a complete guideline for offshore vessels carrying supply cargo and personnel in coastal operations.

16) MODU Code(Mobile Offshore Drilling Unit code): is a requirement for construction and equipment to be used for safe operation in offshore drilling units. This code updates and revises the provisions under the 1989 MODU Code.

17) HSC Code(High-Speed Craft code): This code primarily pertains to, among others, air-cushion vehicles (such as hovercraft) and hydrofoil boats. is used to maintain a safe standard for construction equipment and operation of high-speed vessels used in maritime industry.

18) LSA Code(International Life Saving Appliances Code): comes under SOLAS which deals with the safety equipment in terms of construction, operation and other requirements for well being of crew onboard ship. Note that this code is imperative in the procuring, application and maintenance of all lifesaving appliances on board.

19) FSS Code(International Fire Safety System Code): also comes under SOLAS. It deals with all the fire fighting appliances, measures, and system to be used onboard to detect, notify and extinguish any kind of fire in sea going vessel. Note that this this code is imperative in the procuring, application and maintenance of all fire fighting equipment on board.

20) FTP Code (Fire Test Procedure code): is the guideline for manufacturers and ship builders to construct vessels and fire test parts to be used onboard ships. For obvious reasons, the provisions of this code can be read in conjunction with the FSS Code.

21) Polar Code: This Code came into force on 1st January, 2017. Mandated under SOLAS as well as MARPOL, this code aims to protect the ships and lives of the personnel on ship from the harsh conditions at the poles.

22) Code of Safe Working Practices for Merchant Seafarers: Provides guidance for improving health and safety on board ship which is intended primarily for merchant seafarers.

23) Code of Conduct for the Merchant Navy: This Code aims to provide a system of adherence with regard to personal conduct onboard a merchant ship.

Source: Marine Insight

Transportation, warehousing, and inventory management are fraught with risks at all levels. For a successful buy-sell transaction or vice versa, all risk factors must be considered, managed, and countermeasures executed, leaving no room for error.

However, logistics management and execution of its various functions are not easy tasks. Each step has to be handled with care. Achieving zero-error performance might not always be possible, but every step should be taken to aim for this.

Supply chain disruptions happen when logistics management and task execution are not synchronised and, in some cases, when unexpected events occur.

Supply chain disruptions can have far-reaching and disastrous consequences. Besides delays in deliveries, it can affect product quality, create shortages or excess of stocks, and upset warehousing and storage capacities.

Also, projects may often be delayed, their overall costs shoot up, and strategies go off track. Frequent disruptions can affect an organisation’s reputation.

Risks associated with transportation and storage are the most common in logistics. Breakdowns and failures can be prevented to a large extent by proper planning and having backup plans in place.

What are the Main Logistics Risks Faced by Businesses Today?

This can be quite an exhaustive list, but let’s review the main risks that logistics organisations face.

Supply Risks

Relying on a sole supplier might have its benefits, but imagine if they suddenly decide to turn off the supply. Having one or two backup suppliers who can be relied on in such situations can help to a certain extent.

Maintaining good supplier relationships can go a long way toward ensuring uninterrupted supplies. Suitable software with strong forecasting techniques helps produce reliable figures that can, in turn, help the supplier plan production accordingly. This helps prevent stock-outs and overstocks.

Transportation Issues

Transportation is the backbone of the logistics industry. Without it, the physical movement of goods, whether for buying or selling, can never be complete. Arranging the correct type of transport for moving the required quantities is crucial in avoiding transportation risks.

However, transportation depends on many factors, such as cost, the quantity and quality of goods being moved, journey distance, proximity to ports and railway yards, and others.

Goods can spoil or deteriorate with time if mishandled during transport and storage. Temperature-sensitive goods must be transported in the right containers, and refrigerators or temperature-controlled containers help to maintain the quality of the goods transported.

As in warehousing, goods are mainly transported under ambient, chilled, or frozen conditions, depending on the type of goods. Accurate storage temperatures, as the customer prescribes, must be followed during transportation to prevent spoilage and deterioration.

For example, grains are often transported under ambient conditions. Fruits and vegetables are transported over long distances in chilled containers, while meat, fish, and poultry are transported in refrigerated containers.

Most of the transport today involves multimodal containers. Reputed transport operators handle multimodal transport arrangements efficiently. Eventualities such as equipment breakdown, alternate routing, staffing, labour issues, etc., are often considered by these operators while planning the transport of goods.

Handling and Storage Risks

Technologically advanced warehouses for the storage of temperature-sensitive products are common these days. They are designed to store such products at the required temperature, humidity, and other conditions that ensure their quality, texture, etc.

Warehouse operators have to ensure that the vehicles used for transporting goods to customers, containers, Material Handling Equipment (MHEs), and their warehouses are maintained and serviced correctly at the prescribed intervals to avoid breakdown.

Security Risks

Modern multimodal containers are mostly theft- and pilferage-proof. Similarly, modern warehouses are designed to prioritise security. In addition to security personnel, cameras and sensors are installed at critical points to deter pilferage, theft, and unauthorised access.

Cyber Risks

Hackers can compromise an organisation’s information system. This often leads to the organisation’s confidential information finding its way into the open net, leading to considerable cyber risks.

Sensitive data relating to finance, customers, and shipments should never fall into the wrong hands where it can be misused. Hackers often steal data to sabotage operations.

Some ways to minimise cyber risks include using updated and original software with anti-malware, data encryption, and enforcing system access control for employees.

Political Events and Natural Calamities

Wars, conflicts, and significant political upheavals pose considerable logistics and business operations risks. Similarly, forces of nature, such as storms, floods, fires, etc., are natural calamities beyond mankind’s control.

Both are considered ‘force majeure’ or ‘acts of god’. They interrupt the normal flow of work and often cause damage and destruction of property. Though very little can be done about such instances, arrangements can be made to transport goods by an alternate mode of transport, such as having warehousing arrangements at different locations.

Logistics Risk Assessment

Most modern logistic organisations carry out periodic risk assessments. Such assessments help pinpoint the source of risks and their impact on logistics operations. Risks are analysed, and precautions are taken to minimise or prevent them.

Develop contingency plans that are workable and can be mobilised quickly. Policies and procedures considering such situations should be developed, or existing ones should be updated and enforced by logistics companies.

What Else Can We Do to Minimise Logistics Risks?

It is essential to have robust policies and procedures that are easy to understand while covering all aspects of logistics operations and business. Communication is vital in any operation.

Encourage cross-department and one-to-one communication between employees, and make sure that management communicates well with their employees.

Staff training and motivation are crucial here.

Learn from the competition. They might have a few good note-worthy points to help you run your organisation more efficiently and effectively. Join the local logistics association, where ideas and interests can be shared to help grow the business collectively.

New risks can occasionally arise. Safety protocols should be developed, updated, and enforced to combat such unexpected risks.

Source: Marine Insight