Intercargo, the representative body of the international dry-bulk shipping sector, is calling for unity in the shipping industry over the issue of bulk carrier safety.

Last year alone 14 bulk carriers were lost, with 23 fatalities; the average age of the ships was 20.4 years. Explains Tsao, Structural failure remains a consistent and significant cause of loss, while the presence of heavy cargoes features in many of the losses. Hence we are calling for an assessment of minimum shipbuilding standards, arguing that many standard bulk carrier designs have become too optimised.

Minimum design standards
We are alive to the problem that yard specifications are generally too low for many bulk carriers, and our Executive Committee strongly supports the call by the Hong Kong Shipowners Association (HKSOA) for a common minimum bulk carrier design standard.
Tsao acknowledges that a higher building specification will normally result in increased prices, and emphasises that overcapacity in the shipbuilding industry worldwide is giving rise to severe competition not only between shipbuilders and suppliers but also between shipowners which is having a negative impact on the market.
As an industry, we are subject to a vicious circle of endless cost-cutting. A typical example is the way that cost pressure forces shipowners to press for lower shipbuilding prices. The shipyards respond by refining their safety margins, through exerting pressure on classification societies.

Keeping the balance
Tsao concedes that classification societies and regulating authorities face a complex situation when trying to improve bulk carrier safety. He believes industry bodies need to develop their own initiatives, as in the case of the HKSOA, but stresses the importance of working collectively and speaking with one voice. Over the past two years, Intercargo has implemented a number of programmes, including the setting up of Asian and European panels to discuss issues in these regions. Various roundtable meetings and dialogue sessions have also been held in order to share industry experiences.
Tsao continues, Through the Asian panel, we are already talking to shipyards and classification societies to share with them our concerns. We want them to adopt clear criteria for ship design that take into account safety, environmental, manning and structural issues. This will enable a more holistic approach to ship design and will move us closer to the ideal ship forms. It will still allow for robust competition without the lowering of technical standards.