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The
Year 2000 problem
Nobody living outside the Amazonian rain forest can today be
unaware of the Year 2000 problem, Y2K or the millennium bug,
as it is variously known. The task of checking computer systems
to see whether they are Y2K compliant has generated a global
industry of massive proportions: one estimate puts the total
cost at more than that of the First and Second World Wars combined!
ICS took steps at an early stage to alert the industry to the
problem, and over a year ago joined forces with the UK P&I
Club, Lloyd's Register and BIMCO in promoting a series of seminars
on the subject. ICS was also associated with establishing a Ship2000
web site (www.ship2000.com) to provide contact details of, and
guidance from, industry organisations and equipment manufacturers.
More recently attention has turned to the need to ensure effective
contingency planning for the Y2K critical dates. No shipping
company can be absolutely confident that all its operations will
be problem-free, let alone that ports, terminals or other vessels
are fully compliant. A properly-considered contingency plan,
to be activated as required, is therefore essential and the exercise
of 'due diligence', a necessary part of maintaining insurance
cover, implies that a contingency plan is in place.
One aspect of effective preparation is the exchange of information
between ships and ports. As 1998 unfolded, it became clear that
shipping companies were increasingly being asked by ports to
complete questionnaires on their state of Y2K preparedness, including
the unhelpful absolute: 'Are you Y2K compliant?'. With this in
mind, and conscious that ships also need corresponding assurances
from ports, ICS decided to work together with other industry
organisations to develop an agreed code of practice. The proposition
was given added impetus by the decision of the US Coast Guard
to host a conference of industry organisations at IMO in early
March 1999, in response to a request from the United Nations
to ensure that the maritime sector was making adequate provision
to deal with the Y2K problem.
In co-operation with other industry organisations, including
importantly the International Association of Ports and Harbors,
ICS was able to present a draft text for consideration by the
March meeting. The US Coast Guard agreed to use this document
as the basis for discussion, and after two days adopted a Code
of Good Practice incorporating the requirement for contingency
planning as well as carefully-worded check lists for both ships
and ports/terminals. The Code has subsequently been circulated
by IMO worldwide.
This is a significant achievement, which in itself should encourage
a proper degree of co-operation and exchange of information between
shipping companies and ports. However, there is more to be done,
for both parties have the responsibility to ensure that they
can continue to operate without hazard to safety, the environment,
their assets and those of third parties. It is quite possible,
for instance, that a ship's master may decide, on the basis of
the information available to him, that it would be imprudent
to enter congested waters or load or discharge cargo until a
period of uncertainty has passed. In the hope of reducing consequential
litigation in such circumstances ICS is currently working with
the P&I Clubs and others to promote a Year 2000 Safety Protocol,
intended to exempt ships from liability for delay or deviation
resulting from the exercise of caution in accordance with the
Code of Good Practice. The hope is that charterers, as much as
owners, will realise the benefits of such an agreement, and that
the only losers will be the litigation lawyers.
No one will know the impact of the Year 2000 problem until it
is in the past and life is back to normal. The most one can say
is that time and effort spent on preparations now must help to
reduce the prospect of a crisis on the night.
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