Many Shipowners operators and crew are unware that a small security risk is not a valid reason for switching off the ship’s Automatic Identification System (AIS).
Even more are obvious to the consequences of doing so- which range from heavy fines to detention- if smuggling is suspected, vessels pose a safety risk in a high traffic area, charter party has been reached or there has been non-compliance with individual country requirements, says in article published on bimco website.
Heavy fines to combat smuggling
Ashok Srinivasan, Manager, Maritime Safety And Security at BIMCO, believes that to comply with the regulations, the AIS should be left on for likely 99% of the time.
“A rising number of national governments are currently issuing circulars alerting ships to not switch the AIS off. Switching it off could send a signal that the ship is seeking to hide an activity such as illegal fishing, dealing with a sanctioned country, carrying Iranian oil to North Korea or smuggling other contraband, and therefore wishing to hide the ship’s locafion and route,” he says.
Indonesia is currently fighting the illegal smuggling of goods. Small ships involved in such activity load crude oil or other contraband in the country with the aim of selling it heavily below market prices in Singapore or Malaysia. In the process, the ships switch off the AIS to go unidentified and “disappear” while engaging in the activity.
To combat the smuggling, the authorities have issued circulars saying that ships must keep the AIS on at all times when transiting Indonesian waters, as they believe that the threat of piracy or risk of hijack, or kidnapping of the crew, is not big enough. There is a threat, but it usually extends to thieves boarding the ship to steal equipment.
“Failing to keep the AIS on could lead to heavy fines,” says Srinivasan. “While the authorities do not specify the size of the fines, according to reports, they could go upto 20,000 US dollars”.
BIMCO AIS clauses will ensure fairness
As a consequence, the shipping industry has seen a surge in contracts that include an AIS clause. While it could be argued that such a clause states the obvious — that the AIS should not be switched off — in many instances, it gives the charterer the ability to terminate a contract if the AIS is switched off even for a moment.
Grant Hunter, Head of Contracts and Clauses at BIMCO, says “The problem we have seen emerging is that the AIS clauses that many have started adding to the contracts are badly drafted”.
From the charterers’ point of view, he says, if it is discovered drafted that the shipowner has switched off the AIS, or if the signal drops from the AIS system on a ship, they have the right to terminate the contract.
To counter the use of poorly worded AIS clauses that may expose owners to the risk of contractual termination even in cases where a ship’s AIS has been turned off for legitimate reasons, BIMCO has drafted an AIS “Switch Off” Clause which is expected to be published in July.
“What we are trying to achieve is to make sure we carve out the procedures so – whatever we have in the AIS clause — they properly address the rights an owner has to legitimately switch off an AIS, but also recognising that sometimes the signal does not transmit, which should not be a reason for the charterer to be able to terminate the agreement,” says Hunter.
“This way, the clauses that are not fair and balanced can be replaced with something that is properly worded and fair to both parties, while preventing contracts being terminated for unjustifiable reasons.”
Summary
- Many Shipowners operators and crew are unware that a small security risk is not a valid reason for switching off the ship’s Automatic Identification System.
- BIMCO, believes that to comply with the regulations, the AIS should be left on for likely 99% of the time.
- Switching it off AIS could send a signal that the ship is seeking to hide an activity such as illegal fishing, dealing with a sanctioned country, carrying Iranian oil to North Korea.
- To counter the use of poorly worded AIS clauses that may expose owners to the risk of contractual termination even in cases where a ship’s AIS has been turned off for legitimate reasons, BIMCO has drafted an AIS “Switch Off” Clause.
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Source: bimco
