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Dry Bulk Management Standard

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by Capt. Michael Fragkias, ex DPA at Sun Enterprises Limited

The Dry Bulk Management Standard (DryBMS ) is a set of guidelines designed to ensure the safe, efficient and environmentally responsible operation of dry bulk carriers. This standard aims to improve the quality and efficiency of dry bulk transport operations by setting clear procedures and requirements for management systems, crew training, health and safety measures, environmental considerations and efficient operations.

DryBMS is a set of best practices and recommendations developed by industry bodies and organizations to improve the safety, operational efficiency and environmental responsibility of the dry bulk shipping industry. The primary objective of DryBMS is to create a standardized framework that allows shipping companies to adopt a structured approach to managing their operations and complying with applicable relevant regulations.

The adoption of DryBMS is particularly important in a global industry where safety, consistency and reliability are key parameters. Dry bulk transport includes commodities such as coal, iron ore and other minerals, grains and fertilizers, which are goods vital to international trade. Ensuring that these operations are carried out safely and efficiently is essential to prevent accidents, protect the environment and meet regulatory and legislative requirements.

The new DryBMS was introduced in early 2020, when the first draft was published under the title DBMS. Since then, RightShip has been collecting industry feedback and has occasionally published revised parts of the originally drafted standard based on feedback received.

Recently, a final draft of the DryBMS was published which was approved by both RightShip and INTERCARGO.

The final release and management of DryBMS which has already been released will be managed by a new organizational structure established for this purpose. DryBulk Centre of Excellence (DBCE ).

Although the implementation of DryBMS in companies operating Bulk Carriers is claimed to be voluntary, relevant experience from the Tanker Industry and the relevant “Tanker Management and Self – Assessment” (TMSA) shows that DryBMS will usher in a new era in the Dry Bulk sector, which must adapt its activities to the upcoming developments and requirements.

To be noted here and taken seriously, by companies managing dry cargo vessels , that nowadays no tanker is chartered by an oil company OCIMF , if the managing company it has not recently submitted a fairly advanced TMSA , on the relevant platform and whose application has been checked ( TMSA management review ) from the relevant company.

The most important aspects of DryBMS are presented here below:

As in the TMSA procedure , the DryBMS is a set of procedures that companies managing dry bulk ships can use to self- assessment aiming to improve their performance. .

The concept of Self-Assessment is nothing new in the shipping industry. The OCIMF’sTanker Management Self – Assessment (TMSA ) was launched in 2004 with application to the transport of liquid cargoes. As with TMSA, based on DryBMS, operators of bulk carriers will assess the effectiveness of their Safety Management Systems (SMS) against the established standard. This process will help them to benchmark their performance against a uniform industry-wide standard, identify areas of weakness, set targets for continuous improvement and take action to achieve those targets.

The DryBMS consists of a self-assessment questionnaire covering 30 subject areas in 4 broad sections/areas:

· Performance (6 thematic units)

· People (The human factor) – Personnel (7 themes sections)

· Plant – Installation (5 thematic units)

· Process – (12 subject areas

The 30 thematic fields cover the entire spectrum of a ship’s operation.

DryBMS will fill an obvious need to introduce a widely applicable standard to promote continuous improvement processes and strengthen the safety culture of the shipping companies that manage dry-cargo vessels..

Compliance with the high standards set by DryBMS is a necessary challenge that companies operating bulk carriers will have to face. Consequently, the process of adapting to this new reality requires collective efforts from all involved and affected parties. It is of utmost importance that they seize the opportunity of the introduction of DryBMS to create a roadmap to operational efficiency and excellence in crew health, safety, quality, environmental protection and social welfare.

The staff involved in the self-assessment of each area, have a very important role as they will have to identify and gather data in relation to the expectation and target for each stage. Some sources of evidence are: The company’s external audits (External audits), the internal controls (Internal audits) and the feedback from the interested parties.

In some publications it is mentioned that “tankerization” is being attempted in the management of dry cargo ships. The requirements, SOLAS , MARPOL , STCW, MLC 2006, ISM Code are applicable to both tankers and dry cargo ships. Both types of ships travel under the same adverse weather conditions and the same stressful and highly dangerous working environment. It is therefore not understood that there should be different standards in these vital areas of health, safety and environmental protection between the management of tankers and dry bulk carriers.

The DryBMS self-assessment tool provides a rating of a subscriber’s (shipping company) position against industry expectations, on four levels. Basic- Intermediate – Advanced and Excellent. It provides a pathway for maintaining good current practice or the need for improvements in management practices. By adopting the DryBMS framework, a subscriber can demonstrate its commitment to improving safety and demonstrate that its operations exceed existing fundamental requirements.

Crew well-being, environmental protection and sustainable operation are the foundation of this initiative, which encourage companies towards better business practices. This benefits not only ship owners, but all sectors of the shipping industry.

At each thematic level, the standard provides expectations and related objectives (objectives / targets). In particular, each level describes the completeness of a company’s management system in relation to the subject area. The associated expectations and goals can be used by a company to gain improved access to its systems and processes.

In addition, Dry BMS will enable ship managers to qualitatively stand out from the crowd while allowing them to identify the most effective management upgrades needed across their fleet, saving time and money.

Each category has the following four application levels:

· Basic – Mandatory compliance with IMO and flag requirements. The company sets clear HSQE (Health , Safety , Quality , Environmental ) targets

· Intermediate – Continuous improvement of the Basic level . The company incorporates non-mandatory recommendations from the shipping industry into its Safety Management System ( SMS ), in order to manage HSQE risks

· Advanced – Continuous improvement of the Intermediate level . The company has developed technical expertise to manage HSQE risks

· Excellence – (Excellent). Continuous improvement of the advanced level. The company has developed systematic processes to manage all HSQE risks and is now considered world class ( world class operator )

The assessment of compliance with the requirements of each level is done gradually based on a system of percentages per level (0% – 25% – 50% – 75% – 100%). However, there are two key conditions that will apply: Unless the score for the basic level is 100%, the scores for the intermediate, advanced and excellence levels will be scored at 5% of the assessed score.

It goes without saying that the degree of difficulty from the basic level is gradually proportional to the intermediate, advanced, excellence levels. A similar degree of difficulty exists in TMSA from stage 1 to stage 4 and in the application of the corresponding key performance indicators (KPIs).

During 2023 and 2024, INTERCARGO and RightShip, as founding partners of the DryBMS self-assessment system, continued to work towards the establishment of an independent organization, the “Dry Bulk Center of Excellence” (DBCE), created to provide the structure management and operation of the DryBMS framework.

It is envisaged that the DryBMS submission, management and evaluation program by each company would be fully operational from May 2024, by which time INTERCARGO and RightShip will have handed over the day-to-day operation of DryBMS to the DBCE Secretariat where its subscribers can to upload (optionally for now) their ratings.

In August 2024, Dry Bulk Center of Excellence launched the portal Dry Bulk Management Standard. In this secure portal or platform ship owners or managers will be able to submit the digital self-assessment in relation to the DryBMS framework. Ship-owners/ship managers will then have the option to benchmark the results of their self-assessments with charterers and clients.

In addition, the DBCE is expected to establish an independent self-assessment verification process (audits or management reviews) with independent auditors to verify actual performance against submitted assessments.

DBCE urges ship-owners, operators and other stakeholders across the dry bulk sector to use this tool and follow this transformational journey to make dry bulk transport safer and more sustainable.

For the implementation of DryBMS, interested companies can use the following road map either with their own staff or with specialized external consultants:

· Gap analysis : Analysis of gaps in the existing Safety Management Systems ( SMS ) against the relative requirements of DryBMS and upgrade of procedures according to any identified gaps.

· Detailed audit : Detailed audit of the Company’s facilities, using the DryBMS questionnaire. The audit examines all the relevant practices of the Company’s departments, the actual level of SMS implementation, the level of employee awareness, etc.

· Development of tailor-made Management Systems : Development of customized Management Systems , adapted to the particular needs and operational structure of each Company, in accordance with the requirements of DryBMS.

· Review, on a continuous basis of existing Management Systems :  As areas in need of review are identified, procedures are updated with new regulatory standards.

· Training : Effective training programs , adapted to the needs, goals and operational structure of each company, aligned with the requirements of DryBMS.

· Independent audits and assessments: Independent audits and assessments (Navigation, VDR, Cargo, Mooring, Environment, Mechanical operation, Energy, etc.), according to DryBMS requirements.

· Preparation for office audits and vessels’ vetting inspections : Preparation

for  office audit and vessel audit inspections by RightShip and other third parties concerned.

· Support during vetting inspections and audits : Support during examination, inspections and controls from RightShip and other third parties.

The implementation of DryBMS poses many challenges. However, these challenges present opportunities for growth and improvement. The standard encourages companies to invest in better training of their crews, upgrade their ships to meet higher environmental standards and adopt new technologies that enhance operational efficiency.

The timeline for implementing Dry BMS has been designed to allow for gradual adoption by industry participants. The process is structured to encourage companies to integrate DryBMS principles into their existing management systems.:

Phase 1: Awareness and Engagement (2020 – 2022) (Already implemented)

· Objective : The initial phase aimed to create awareness about DryBMS among all stakeholders including ship owners, managers and charterers. During this phase, RightShip and its partners held workshops, webinars and industry consultations to educate stakeholders on the benefits and requirements of DryBMS.

Phase 2: Voluntary adoption and benchmarking (2022 – 2024)

· Objective : The second phase focuses on encouraging the voluntary adoption of Dry BMS by dry bulk carriers. Companies are encouraged to assess their current practices against the standards set by the Dry BMS and identify gaps and areas for improvement.

Phase 3: Transition to Certification (2024 – 2026)

· Objective : This phase marks the beginning of the transition from voluntary adoption to a more formal certification process. Ship-owners or dry bulk operators will be encouraged to seek third-party verification of their compliance with the DryBMS standard. Certification will be based on a thorough assessment of the company’s adherence to the principles outlined in DryBMS. .

Phase 4: Full implementation and industry-wide adoption (2026 and beyond)

· Objective: The final phase aims at widespread adoption of Dry BMS throughout the dry bulk industry. The focus will be on ensuring that all industry participants meet the minimum standards set by DryBMS. This phase will also involve continuous improvement, with the standard being revised and updated based on industry feedback and technological developments.

In this regard, it is noted that TMSA3 is applied to tankers, while TMSA4 is expected to be released soon, to which element 14 will be added. The Human Element.

The full implementation of the DryBMS is expected to have significant positive implications for the dry bulk industry. In general these include:

· Improved safety and operational efficiency: The standard’s focus on leadership, management and safety practices is designed to reduce accidents and operational incidents, leading to safer and more efficient journeys.

· Environmental sustainability: DryBMS encourages the adoption of green technologies and practices, which will help reduce the environmental impact of bulk transport, aligning the industry with global sustainability goals. Compliance with environmental regulations and sustainable practices minimizes the ecological impact of dry bulk operations.

· Enhanced reputation and competitiveness: Companies that adopt DryBMS will likely see an improvement in their reputation in the market, as charterers and customers will increasingly prefer organizations with a proven commitment to safety and sustainability.

· Operational efficiency: Standardized procedures and preventive maintenance practices lead to more efficient operations

· Cost savings: Efficient operations, reduced accidents and minimized environmental fines lead to long-term cost savings.

· Compliance with laws and regulations: DryBMS helps to comply with national and international regulations, reducing the risk of legal implications and penalties.

Let’s see why we need DryBMS:

Over the past decade, there have been over 2,000 bulk carrier incidents in which more than 200 seafarers have lost their lives. This means and proves that the current legislative and procedural arrangements are insufficient to achieve the highest goals in the dry bulk shipping industry.

DryBMS and DBCE aim to help reduce accidents, unsafe conditions and adverse events by helping ship managers improve the way they manage their business. .

The International Safety Management Code (ISM Code) and other regulatory requirements provide a mandatory basic level of vessel and management requirements. Such mandatory provisions only require compliance. They do not require, or provide guidance for, additional best business practices that differentiate the quality and content of management and operations.

DryBMS is not intended to replace such regulatory requirements. Instead it will complement these minimum industry standards and provide a systematic approach to encourage cargo ship operators to move from minimum compliance – to safe and operational excellence and flawless operation) using the continuous improvement methodology (continuous improvement).

Implementing DryBMS requires a commitment to continuous improvement and a structured approach to risk management. The benefits of compliance extend beyond safety and environmental protection, offering competitive advantage, cost savings and improved reputation. As the shipping industry continues to evolve, adherence to this standard will become increasingly important to meet the demands of global trade and sustainability.

To successfully implement and comply with DryBMS, companies must invest in training, technology and a safety culture that permeates all levels of the organization. The adoption of this standard will ensure that maritime transport of dry bulk cargoes is conducted responsibly, efficiently and in accordance with the best practices of the shipping industry.

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