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Navigating Chinese Port Inspections Terence Zhao Managing Director Singhai Marine Services 8 th February 2019, Athens
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Navigating Chinese Port Inspections - Capital Linkforums.capitallink.com/shipping/2018greece//ppt/zhao.pdf · 2/9/2018 · Navigating Chinese Port Inspections ... China Tokyo MOU

Apr 10, 2018

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Page 1: Navigating Chinese Port Inspections - Capital Linkforums.capitallink.com/shipping/2018greece//ppt/zhao.pdf · 2/9/2018 · Navigating Chinese Port Inspections ... China Tokyo MOU

Navigating Chinese Port Inspections

Terence Zhao Managing Director

Singhai Marine Services 8th February 2019, Athens

Page 2: Navigating Chinese Port Inspections - Capital Linkforums.capitallink.com/shipping/2018greece//ppt/zhao.pdf · 2/9/2018 · Navigating Chinese Port Inspections ... China Tokyo MOU

Port State Control (PSC)

VS

Flag State Control (FSC)

Page 3: Navigating Chinese Port Inspections - Capital Linkforums.capitallink.com/shipping/2018greece//ppt/zhao.pdf · 2/9/2018 · Navigating Chinese Port Inspections ... China Tokyo MOU

PSC, a nightmare for Shipowner?

Page 4: Navigating Chinese Port Inspections - Capital Linkforums.capitallink.com/shipping/2018greece//ppt/zhao.pdf · 2/9/2018 · Navigating Chinese Port Inspections ... China Tokyo MOU

6090

17503 17840

China Tokyo MOU Paris MOU

YR 2016

35%

Page 5: Navigating Chinese Port Inspections - Capital Linkforums.capitallink.com/shipping/2018greece//ppt/zhao.pdf · 2/9/2018 · Navigating Chinese Port Inspections ... China Tokyo MOU

In year 2016, 422 ships detained by China, with detention rate of 5.46%

5.46%

3.44% 3.83%

China Tokyo MOU Paris MOU

61.3%

38.7%

other members of Tokyo MOU China

Page 6: Navigating Chinese Port Inspections - Capital Linkforums.capitallink.com/shipping/2018greece//ppt/zhao.pdf · 2/9/2018 · Navigating Chinese Port Inspections ... China Tokyo MOU

Detention percentage by ship type

Page 7: Navigating Chinese Port Inspections - Capital Linkforums.capitallink.com/shipping/2018greece//ppt/zhao.pdf · 2/9/2018 · Navigating Chinese Port Inspections ... China Tokyo MOU

Detention per Flag

Page 8: Navigating Chinese Port Inspections - Capital Linkforums.capitallink.com/shipping/2018greece//ppt/zhao.pdf · 2/9/2018 · Navigating Chinese Port Inspections ... China Tokyo MOU

Top 8 Ports in China

Detention Ratio

2/9/2018

7.79%

5.17% 4.87%

3.20%

4.05%

5.38%

9.24% 8.83%

5.47%

DALIAN GUANGZHOU QINGDAO SHANGHAI SHENZHEN TIANJIN XIAMEN NINGBO AVERAGE OFCHINA

Page 9: Navigating Chinese Port Inspections - Capital Linkforums.capitallink.com/shipping/2018greece//ppt/zhao.pdf · 2/9/2018 · Navigating Chinese Port Inspections ... China Tokyo MOU

Main Deficiencies Found In China

Page 10: Navigating Chinese Port Inspections - Capital Linkforums.capitallink.com/shipping/2018greece//ppt/zhao.pdf · 2/9/2018 · Navigating Chinese Port Inspections ... China Tokyo MOU

Percentage of Detainable Deficiencies in China

3.8%

5.5%

2.5%

4.6%

1.4%

17.6%

6.0%

3.1%

4.0%

2.9%

4.0%

1.4%

13.9%

7.0%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0%

Life saving appliances

Fire safety

Structural Conditions

Water/Weathertight conditions

Safety of Navigation

ISM

Pollution prevention

Tokyo MOU China

Page 11: Navigating Chinese Port Inspections - Capital Linkforums.capitallink.com/shipping/2018greece//ppt/zhao.pdf · 2/9/2018 · Navigating Chinese Port Inspections ... China Tokyo MOU

China PSC Inspection Data, 2017 (Statistics of Tokyo MOU will be published soon)

- Vessels inspected: 6707

- Vessels with deficiencies: 5771, 84.27%

- Vessels detained: 358, 5.23%

- Total deficiencies : 26372, 3.85 per vessel.

- High Risk Vessel: 2503, 36.55%

Page 12: Navigating Chinese Port Inspections - Capital Linkforums.capitallink.com/shipping/2018greece//ppt/zhao.pdf · 2/9/2018 · Navigating Chinese Port Inspections ... China Tokyo MOU

All the figures tell that you may have been

facing a very BIG CHALLENGE when your

ships call China ports.

Page 13: Navigating Chinese Port Inspections - Capital Linkforums.capitallink.com/shipping/2018greece//ppt/zhao.pdf · 2/9/2018 · Navigating Chinese Port Inspections ... China Tokyo MOU

NIR (New Inspection Regime)

working well in China?

Page 14: Navigating Chinese Port Inspections - Capital Linkforums.capitallink.com/shipping/2018greece//ppt/zhao.pdf · 2/9/2018 · Navigating Chinese Port Inspections ... China Tokyo MOU

Ship Risk Profile—SRP

General Factors

- ship type - age - flag (VISMAS)

- RO - company

Historical Factors - deficiencies - detentions

HRS – High Risk Ship(Targeted vessel for PSC inspection)

SRS – Standard Risk Ship

LRS – Low Risk Ships

Page 16: Navigating Chinese Port Inspections - Capital Linkforums.capitallink.com/shipping/2018greece//ppt/zhao.pdf · 2/9/2018 · Navigating Chinese Port Inspections ... China Tokyo MOU

Look into the CODE in a very different way.

Code 30 or Code 17?

Code 17 or Code 16?

Page 17: Navigating Chinese Port Inspections - Capital Linkforums.capitallink.com/shipping/2018greece//ppt/zhao.pdf · 2/9/2018 · Navigating Chinese Port Inspections ... China Tokyo MOU

Code 30, the PRICE

- OPEX

- LOH

- Bad Record at Tokyo MOU

- Reputation

- Charter rate

……

Page 18: Navigating Chinese Port Inspections - Capital Linkforums.capitallink.com/shipping/2018greece//ppt/zhao.pdf · 2/9/2018 · Navigating Chinese Port Inspections ... China Tokyo MOU

How foreign owners can better manage the possible risks?

Page 19: Navigating Chinese Port Inspections - Capital Linkforums.capitallink.com/shipping/2018greece//ppt/zhao.pdf · 2/9/2018 · Navigating Chinese Port Inspections ... China Tokyo MOU

293 PSCOs from 55 ports of China

Page 20: Navigating Chinese Port Inspections - Capital Linkforums.capitallink.com/shipping/2018greece//ppt/zhao.pdf · 2/9/2018 · Navigating Chinese Port Inspections ... China Tokyo MOU

Advice to shipowner 1) study the detention cases, do Specific training for managers and Senior Officers 2) understand the cultural difference and communication barriers, be prepared. 3) show respect to the PSCOs and the report given, appeal in an appropriate way

Page 21: Navigating Chinese Port Inspections - Capital Linkforums.capitallink.com/shipping/2018greece//ppt/zhao.pdf · 2/9/2018 · Navigating Chinese Port Inspections ... China Tokyo MOU

Alternatively, we at Singhai may help you to

solve your problems.

Page 22: Navigating Chinese Port Inspections - Capital Linkforums.capitallink.com/shipping/2018greece//ppt/zhao.pdf · 2/9/2018 · Navigating Chinese Port Inspections ... China Tokyo MOU

Singhai Protective Agency Service

- Owner’s Representative

Page 23: Navigating Chinese Port Inspections - Capital Linkforums.capitallink.com/shipping/2018greece//ppt/zhao.pdf · 2/9/2018 · Navigating Chinese Port Inspections ... China Tokyo MOU

A Dedicated Professional Team

- Strong connection with more than 10 years development

- Experience and expertise

- Trust (Organise PSCOs Seminar every year)

- Result driven

Page 24: Navigating Chinese Port Inspections - Capital Linkforums.capitallink.com/shipping/2018greece//ppt/zhao.pdf · 2/9/2018 · Navigating Chinese Port Inspections ... China Tokyo MOU

Examples

Page 25: Navigating Chinese Port Inspections - Capital Linkforums.capitallink.com/shipping/2018greece//ppt/zhao.pdf · 2/9/2018 · Navigating Chinese Port Inspections ... China Tokyo MOU

Vessel: ISXXXXX SSXXXX. Port: Rizhao China. Code 30 issued due to lifeboat not working properly. Through Singhai’s effort: vessel was released within one day without any delay and code 30 was removed. The new report was uploaded to Tokyo MOU

Page 26: Navigating Chinese Port Inspections - Capital Linkforums.capitallink.com/shipping/2018greece//ppt/zhao.pdf · 2/9/2018 · Navigating Chinese Port Inspections ... China Tokyo MOU

Vessel: BXXXXX KXXXXX. Port: Yangpu, China. Owner requested a clean report for commercial requirement Through Singhai’s effort: zero deficiency found, clean report was given.

Page 27: Navigating Chinese Port Inspections - Capital Linkforums.capitallink.com/shipping/2018greece//ppt/zhao.pdf · 2/9/2018 · Navigating Chinese Port Inspections ... China Tokyo MOU

Vessel: BXXXXX DXXXXX. Port: Qingdao, China. 8 deficiencies plus 1 major deficiency with Emergency Fire Pump, Code 17. Through Singhai’s effort: Eventually only one Code 16 given.

Page 28: Navigating Chinese Port Inspections - Capital Linkforums.capitallink.com/shipping/2018greece//ppt/zhao.pdf · 2/9/2018 · Navigating Chinese Port Inspections ... China Tokyo MOU

Our capability

Make big issue smaller

Make small issue zero

Page 29: Navigating Chinese Port Inspections - Capital Linkforums.capitallink.com/shipping/2018greece//ppt/zhao.pdf · 2/9/2018 · Navigating Chinese Port Inspections ... China Tokyo MOU

Our Aim

to help foreign shipowners 1) reduce unnecessary Loss 2) maintain ships at Low Risk status 3) win reputation in the marketplace

Page 30: Navigating Chinese Port Inspections - Capital Linkforums.capitallink.com/shipping/2018greece//ppt/zhao.pdf · 2/9/2018 · Navigating Chinese Port Inspections ... China Tokyo MOU

Ευχαριστω

Thank you

谢谢