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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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