{"id":11183,"date":"2020-07-22T04:43:15","date_gmt":"2020-07-22T04:43:15","guid":{"rendered":"http:\/\/shipip.com\/?p=11183"},"modified":"2020-07-22T04:43:15","modified_gmt":"2020-07-22T04:43:15","slug":"american-club-circular-no-20-20-vessel-monitoring-and-pi-insurance","status":"publish","type":"post","link":"https:\/\/developmenttask.com\/ShipIpLtd\/american-club-circular-no-20-20-vessel-monitoring-and-pi-insurance\/","title":{"rendered":"American Club circular no.20\/20 \u2013 Vessel Monitoring and P&I Insurance"},"content":{"rendered":"
In line with their legal and regulatory obligations, all clubs in the International Group maintain sophisticated sanctions compliance programs and procedures. The rules and procedures developed by clubs to manage sanctions risks take account of the guidance provided by bodies such as the UN Security Council (UNSC), the UK Office of Financial Sanctions Implementation (OFSI), the US State Department and the US Office of Foreign Assets Control (OFAC).\u00a0 Through their systems of circulars and news alerts, clubs also seek to keep their members up to date on recent developments with respect to sanctions.<\/div>\n
<\/div>\n
The ability to track vessels using their AIS (Automatic Identification System) signals has become an increasingly important part of clubs\u2019 sanctions compliance programs.\u00a0 All International Group clubs have now agreed a common minimum standard of tracking.<\/div>\n
Review of vessel tracking software<\/b><\/div>\n
\u00a0<\/b><\/div>\n
In order to ensure that clubs were fully aware of capabilities of the products available in this fast-developing area, a working group carried out in-depth discussions with service providers to better understand the technology available to monitor vessel movements in high risk areas.\u00a0 These products were subsequently trialed against the software currently utilized by clubs.\u00a0 All Group clubs have now entered into agreements with commercial providers to track the movements of their entered vessels.<\/div>\n
Introduction of a common standard for vessel tracking<\/b><\/div>\n
\u00a0<\/b><\/div>\n
All clubs\u00a0share the common goals of ensuring their members are aware of the sanctions framework in which they operate and that their members\u2019 vessels are not traded in violation of applicable sanctions.\u00a0 The agreed common minimum standard of vessel tracking in high risk areas helps to identify activities such as port calls in sanctioned countries, abnormal navigation, manipulation and\/or switching off a vessel\u2019s AIS transmitter, and STS operations in high risk areas.<\/div>\n
<\/div>\n
P&I clubs can use the information received from the tracking provider to reach out to members to ensure that they are fully aware of the sanctions which may impact on their trading patterns and the due diligence steps that can be taken to ensure no sanctions are violated.\u00a0 The information can also be used to mitigate the risk of the club inadvertently providing cover to a vessel which is violating sanctions.<\/div>\n
\u00a0<\/b><\/div>\n
Limitations of AIS tracking<\/b><\/div>\n
\u00a0<\/b><\/div>\n
As highlighted in Club\u00a0Circular No. 03\/19<\/a>\u00a0of January 11, 2019, an indicator of potential evasion activity is when a vessel\u00a0inexplicably diverts course or ceases to transmit its AIS signal. However, routine monitoring of a vessel\u2019s AIS transmissions is not a complete answer when it comes to identifying potential evasion activity.\u00a0\u00a0 A suggestion that a vessel may be \u201cgoing dark\u201d, be engaged in \u201cdark activity\u201d or having its AIS \u201cturned off\u201d, simply because no signal is received, can be misleading.\u00a0 This is because there are several possible reasons why no AIS signal may be received. For example:<\/div>\n
\n
    \n
  1. The issue may not be on the vessel but with the receipt of the AIS signal, particularly in areas of high-density traffic. This is a common problem.<\/li>\n
  2. \u00a0Different commercial providers use different AIS receivers and so just because one provider shows no AIS signal being received, another service may evidence an AIS signal being successfully transmitted.<\/li>\n
  3. As has been highlighted in US shipping advisories, vessel spoofing may take place by other ships transmitting a false AIS and using the IMO number (the unique vessel identification code) of a different vessel.\u00a0\u00a0An inevitable consequence of such spoofing is that innocent vessel owners can be surprised to learn that their vessel is falsely reported as being potentially thousands of miles from its actual location and be accused of sanctions evasion.<\/li>\n
  4. The Safety of Life at Sea Convention (SOLAS) provides that\u00a0ships fitted with AIS shall maintain AIS in operation at all times except where international agreements, rules or standards provide for the protection of navigational information<\/i>; a failure to operate a vessel\u2019s AIS equipment in accordance with the requirements of SOLAS breaches flag state requirements. However,\u00a0SOLAS permits an AIS transmitter to be turned off for safety and security reasons and therefore where the transmitter has been turned off, there may be a justifiable reason for this.<\/li>\n
  5. Where a ship is not in compliance with flag state requirements the owner risks prejudicing cover under P&I club rules. There will also be grounds to deny P&I cover on the basis of imprudent or unlawful trading where an owner trades his vessel in breach of sanctions, disguising its location by manipulating or withholding the transmission of AIS data.<\/li>\n<\/ol>\n<\/div>\n
    Notwithstanding these limitations, the routine monitoring of AIS transmission has an important role to play as part of the Club\u2019s continuing efforts to comply with applicable sanctions legislation and deprive cover to vessels engaged in sanctions breaking.\u00a0 However, monitoring of AIS signals alone cannot ensure effective sanctions compliance. It is only one piece of the full picture. \u00a0Other non-AIS data systems can also assist in effective vessel monitoring programs together with ship security alert systems and data provided by flag states.\u00a0 Analysis of the raw data by experts is also essential.\u00a0 Satellite imagery is an increasingly useful additional tool.<\/span><\/div>\n
    \u00a0<\/span><\/div>\n
    All International Group clubs are committed to monitoring vessels in high risk areas and minimizing risk for their members and\u00a0have issued a similarly worded circular.<\/div>\n
    Yours faithfully,<\/div>\n
    \u00a0\u00a0<\/div>\n
    <\/div>\n
    Joseph E.M. Hughes, Chairman & CEO<\/div>\n
    Shipowners Claims Bureau, Inc., Managers for<\/div>\n
    \u00a0\u00a0\u00a0THE AMERICAN CLUB<\/b><\/div>\n
    <\/div>\n
    <\/div>\n
    All Clubs in the International Group of P&I Clubs have issued similar Circulars<\/i><\/div>\n","protected":false},"excerpt":{"rendered":"

    In line with their legal and regulatory obligations, all clubs in the International Group maintain sophisticated sanctions compliance programs and procedures. The rules and procedures developed by clubs to manage sanctions risks take account of the guidance provided by bodies such as the UN Security Council (UNSC), the UK Office of Financial Sanctions Implementation (OFSI), […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[125],"tags":[126],"class_list":["post-11183","post","type-post","status-publish","format-standard","hentry","category-uk-club","tag-uk-club"],"_links":{"self":[{"href":"https:\/\/developmenttask.com\/ShipIpLtd\/wp-json\/wp\/v2\/posts\/11183","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/developmenttask.com\/ShipIpLtd\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/developmenttask.com\/ShipIpLtd\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/developmenttask.com\/ShipIpLtd\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/developmenttask.com\/ShipIpLtd\/wp-json\/wp\/v2\/comments?post=11183"}],"version-history":[{"count":0,"href":"https:\/\/developmenttask.com\/ShipIpLtd\/wp-json\/wp\/v2\/posts\/11183\/revisions"}],"wp:attachment":[{"href":"https:\/\/developmenttask.com\/ShipIpLtd\/wp-json\/wp\/v2\/media?parent=11183"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/developmenttask.com\/ShipIpLtd\/wp-json\/wp\/v2\/categories?post=11183"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/developmenttask.com\/ShipIpLtd\/wp-json\/wp\/v2\/tags?post=11183"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}